Press "Enter" to skip to content

Flipkart Co-Founder Goes To Court After Probe Agency’s Penalty Notice

ED has been investigating e-commerce giants Flipkart and Inc for years. (File)

New Delhi:

Sachin Bansal, co-founder of e-commerce large Flipkart, has mounted a court docket problem towards the Enforcement Directorate (ED), which has accused him and others of violation of international funding legal guidelines, court docket information confirmed.

The ED had in July issued a so-called present trigger discover to Flipkart, its founders and a few traders, asking them to clarify why they need to not face a penalty of $1.35 billion for alleged violation of international funding legal guidelines between 2009 and 2015, Reuters reported final month.

Court information and media stories on Saturday confirmed Sachin Bansal has urged a court docket in Tamil Nadu to quash the company’s discover, arguing that it was issued after an inordinate delay.

Judge R Mahadevan heard the matter on Friday and requested the ED to file a response, stories mentioned.

Sachin Bansal, the ED and Flipkart didn’t instantly reply to requests for remark. Flipkart has beforehand mentioned it was “in compliance with Indian laws and regulations” and would cooperate with authorities.

The ED has been investigating e-commerce giants Flipkart and Inc for years for allegedly bypassing international funding legal guidelines that strictly regulate multi-brand retail and prohibit such corporations to working a market for sellers.

Walmart took a majority stake in Flipkart for $16 billion in 2018, its greatest deal ever. Sachin Bansal bought his stake to Walmart at the moment, whereas the opposite co-founder, Binny Bansal, retained a small stake.

The case involved an investigation into allegations that Flipkart attracted international funding and a associated occasion, WS Retail, then bought items to customers on its procuring web site, which was prohibited underneath the regulation, Reuters has reported.

In February, a Reuters investigation primarily based on Amazon paperwork confirmed it had given preferential remedy for years to a small group of sellers, publicly misrepresented ties with them and used them to bypass Indian regulation. Amazon says it provides no preferential remedy to any vendor.

Be First to Comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    %d bloggers like this: