Flipkart can be fined up to Rs 31,800 by the Enforcement Directorate for allegedly violating FDI rules. However, Flipkart has claimed it has always obeyed Indian laws including FDI rules.
Flipkart is alleged to have violated the Foreign Direct Investment (FDI) rules. (Photo: Reuters)
The Enforcement Directorate (ED) is likely to impose a fine of up to Rs.31,800 billion on e-commerce giant Flipkart for violating the rules on foreign direct investment (FDI), sources said on Thursday.
India Today TV has learned that the financial auditors filed a complaint on July 1st with Flipkart and its senior officials for violating FDI rules under the Foreign Exchange Management Act (FEMA).
According to the law, Flipkart can be fined up to 300 percent to 10,600 billion rupees, a senior official told India Today TV.
The official added that the final amount of the sentence will be determined at a later date.
Concrete evidence of a violation of FDI rules by Flipkart has been found, the senior officials said.
Between 2009 and 2015, Flipkart received FDI of Rs 10,600 crore for its wholesale business from a Mauritius-based company, sources said. However, the money was reportedly used for multi-brand deals.
“Flipkart complies with Indian laws and regulations, including FDI regulations. We will work with the authorities when they look into this issue in the context of the 2009-2015 period as per their communication, ”Flipkart said in a statement.
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