Thu Nov 07 14:43:12 UTC 2024: ## ED Raids Amazon and Flipkart Vendors Over Suspected FEMA Violations

**New Delhi, November 7, 2024:** The Enforcement Directorate (ED) conducted searches at 19 premises across five states, targeting key vendors of e-commerce giants Amazon and Flipkart. The raids were conducted in Delhi, Bengaluru, Mumbai, Hyderabad, and Panchkula, based on allegations that the vendors might have violated the Foreign Exchange Management Act (FEMA).

According to an ED official, the investigation was initiated following several complaints against Amazon and Flipkart, accusing them of manipulating sale prices and creating an unfair playing field for other vendors by violating Foreign Direct Investment (FDI) rules.

The Confederation of All India Traders (CAIT), a trade body that has been vocal about these concerns, welcomed the ED action. BJP MP Praveen Khandelwal, secretary general of CAIT, stated that the raids reflect the government’s commitment to ensuring a level playing field for all businesses.

“No one is above the law in the new Bharat, led by Prime Minister Narendra Modi,” said Khandelwal. He added that the CCI (Competition Commission of India) had previously issued penalty notices to Amazon, Flipkart, and their preferred sellers for engaging in anti-competitive practices.

The raids come amidst ongoing concerns about the impact of e-commerce giants on small traders and Kirana stores. CAIT has urged both the CCI and ED to take swift action to prevent further damage to the businesses of small traders.

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