Thu Nov 07 10:14:36 UTC 2024: ## ED Raids Amazon and Flipkart Sellers Amidst Foreign Investment Probe
**New Delhi, November 7, 2024:** The Enforcement Directorate (ED) has launched raids on the offices of several sellers operating on Amazon and Walmart’s Flipkart platforms. This action is part of an ongoing investigation into alleged violations of foreign investment rules by the e-commerce giants.
The raids, conducted in New Delhi, Mumbai, and Bengaluru, come weeks after Reuters reported that India’s antitrust body found the two companies and their sellers guilty of violating competition laws by giving preference to select sellers on their platforms. Both Amazon and Flipkart have consistently maintained their adherence to Indian laws.
According to government sources, the ED’s investigation focuses on alleged violations of foreign exchange laws. The raids on sellers are part of this broader probe.
For years, Indian brick-and-mortar retailers have accused Amazon and Flipkart of violating foreign investment rules by collaborating with preferred sellers. A 2021 Reuters investigation, based on internal Amazon documents, revealed that the company exerted significant control over the inventory of some of its largest sellers on Amazon.in.
Indian laws prohibit foreign e-commerce players from holding inventory of products and restrict them to operating as marketplaces where sellers can offer their goods.
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