The Enforcement Directorate conducted raids on multiple sellers linked to Amazon and Flipkart across major Indian cities, including Delhi, Mumbai, Hyderabad, and Bengaluru.
The raids are part of an investigation into alleged money laundering activities facilitated through these e-commerce platforms.
The ED's investigation is centered around potential violations of the Foreign Exchange Management Act (FEMA), raising concerns about foreign investment regulations.
Reports indicate that the ED is focusing on specific "preferred" sellers who may have engaged in questionable financial practices.
This action follows a report by the Competition Commission of India (CCI), which found that Amazon and Flipkart had favored certain sellers, potentially undermining competition.
Both Amazon and Flipkart have faced scrutiny in India for their business practices, including accusations of sidestepping local laws by closely controlling seller inventories.
Approximately 24 seller locations were targeted during the ED's operations, indicating a significant scale of investigation
Neither Amazon nor Flipkart has publicly commented on the raids or the ongoing investigations as of now.
The Central Consumer Protection Authority (CCPA) is also investigating complaints related to deceptive practices known as “dark patterns” used by online platforms.