ED Launches Probe Into Forex Violation By Amazon, Filpkart Vendors

The Enforcement Direcorate has launched a probe against at least a dozen of prominent vendors of e-commerce giants—-Amazon and Flipkart for allegedly violating forex rules, a senior ED official told NDTV Profit.

The federal agency is examining certain transactions done by some prominent vendors of the e-commerce giants, particularly during the festive sales, the official said.

ED on Thursday has conducted extensive searches at sellers of Amazon, Flipkart covering approximately 22 premises located at Delhi, Bengaluru, Mumbai, Hyderabad and Panchkula.

The agency learnt to have seized documents and computer and digital devices during the searches. 

The agency might soon seek  details from Amazon, Flipkart on the alleged preferred vendors for influencing prices of certain items, official said. 

“We are looking into several complaints and  whether these e-commerce firms control over the inventory of the prominent sellers,” he said. 

The move by ED move reaffirms the government’s resolve to protect the livelihoods of small shopkeepers, All India Consumer Products Distributors Federation said in a statement.

“The step by the government installs confidence that the trading community’s voice has been heard. We are hopeful that law will take its rightful course to safeguard small traders from anti-competitive practices. AICPDF urges both the CCI and the ED to act swiftly to prevent further harm to traditional retail and ensure fair competition across the market,” National President Dhairyashil Patil and Chief Patron Dr PM Ganesh Ram jointly said in a statement.

Amazon India declined to comment on the report.

The Enforcement Direcorate is likely to have received Complaints against these firms for allegedly influencing the sale price of items. 

The e-commerce cos are allegedly not providing level playing field to all its sellers.