The Enforcement Directorate (ED) has issued notices to Flipkart, its founders and nine others in connection with foreign exchange violation case, officials said today.<\/p>\n
A senior ED official related to the probe said: “Yes, a notice has been issued to Flipkart, its founders and nine others.”<\/p>\n
He, however, did not reveal the details of the persons to whom notices have been sent.<\/p>\n
According to financial probe agency sources, in the notice they have asked to explain why they should not face a penalty of US$1.35 billion for alleged violation of foreign investment laws.<\/p>\n
The source said that Flipkart and its other holding firms, including one in Singapore, violated Foreign Exchange Management Act (FEMA) while attracting foreign investments between 2009 and 2015.<\/p>\n
According to ED, the investigating agency has found that WS Retail, a firm incorporated in 2009 to transact with customers, was allegedly acting as a front for retail operations of Flipkart Online Services, incorporated in 2008.<\/p>\n
The ED investigation started after the RBI had raised the issue.<\/p>\n
However, Facebook has stated that it has been compliant with the Indian laws and will cooperate with the authorities in the matter which pertains to 2009-2015.<\/p>\n
Responding to a query on the notice, the company said in a statement: “Flipkart is in compliance with Indian laws and regulations, including FDI regulations.”<\/p>\n
“We will cooperate with the authorities as they look at this issue pertaining to the period 2009-2015 as per their notice,” it said.<\/p>\n
A senior ED official related to the probe said: “Yes, a notice has been issued to Flipkart, its founders and nine others.”<\/p>\n
He, however, did not reveal the details of the persons to whom notices have been sent.<\/p>\n
According to ED, the investigating agency has found that WS Retail, a firm incorporated in 2009 to transact with customers, was allegedly acting as a front for retail operations of Flipkart Online Services, incorporated in 2008.<\/p>\n
The ED investigation started after the RBI had raised the issue.<\/p>\n
In 2018, Walmart took a majority stake in Flipkart. Sachin Bansal sold his stake to Walmart during the deal, while Binny Bansal retained a small stake.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Enforcement Directorate (ED) has issued notices to Flipkart, its founders and nine others in connection with foreign exchange violation case, officials said today. A senior ED official related to the probe said: “Yes, a notice has been issued to Flipkart, its founders and nine others.” He, however, did not reveal the details of the […]<\/p>\n","protected":false},"author":1,"featured_media":9585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[],"class_list":["post-9567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/posts\/9567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/comments?post=9567"}],"version-history":[{"count":3,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/posts\/9567\/revisions"}],"predecessor-version":[{"id":9586,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/posts\/9567\/revisions\/9586"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/media\/9585"}],"wp:attachment":[{"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/media?parent=9567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/categories?post=9567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demo.testctsl.in\/indiafirstepaper\/wp-json\/wp\/v2\/tags?post=9567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}