Flipkart may be fined up to Rs 31,800 by the Enforcement Directorate for allegedly violating FDI rules. However, Flipkart has claimed it has always complied with Indian laws including the FDI rules.
The Enforcement Directorate (ED) is likely to impose a penalty of up to Rs 31,800 crore on e-commerce giant Flipkart for violating Foreign Direct Investment (FDI) rules, sources said on Thursday.
India Today TV has learnt that the financial probe agency had sent a show-cause notice under the Foreign Exchange Management Act (FEMA) to Flipkart and its senior officials on July 1 for violating the FDI rules.
According to the law, a penalty of up to 300 per cent on Rs 10,600 crore can be imposed on Flipkart, a senior official told India Today TV.
The official added that the final amount of penalty will be decided at a later stage.
Concrete evidence of FDI rule violation by Flipkart has been found, the senior officials said.
Between 2009 and 2015, Flipkart received FDI amounting to Rs 10,600 crore for wholesale business from a Mauritius-based firm, sources said. However, the money was allegedly used for multi-brand business.
“Flipkart is in compliance with Indian laws and regulations, including FDI regulations. We will cooperate with the authorities as they look at this issue pertaining to the period 2009-2015 as per their notice,” Flipkart said in a statement.
