5th August 2021
Walmart-owned Flipkart has vowed to comply with Indian laws, including FDI regulations, and cooperate with the Enforcement Directorate on the notice sent for alleged violation of the foreign exchange law
The notice was issued under various sections of the Foreign Exchange Management Act (FEMA). It was issued to a total of 10 noticees last month that includes Flipkart, its founders Sachin Bansal and Binny Bansal among others.
The notice was issued after completion of investigation and the charges include violation of foreign direct investment (FDI) rules and those that regulate multi-brand retail
The case of alleged FDI rules violation against Flipkart has been under the ED scanner since 2012, and the agency, as per official sources, has found alleged violations of FEMA under various counts including an instance of transfer and issue of security to a person/entity outside India.
Last month, Flipkart raised $3.6 billion in funding led by GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, valuing the e-commerce giant at $37.6 billion.
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