‘Flipkart, Bharti Walmart under lens on compliance’

Dec 05 2012, 01:04 IST
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SummaryThe Enforcement Directorate has been asked to investigate alleged violation of FDI regulations by Flipkart and Bharti Walmart.

The Enforcement Directorate has been asked to investigate alleged violation of FDI regulations by Flipkart and Bharti Walmart.

References alleging that some companies are carrying out activities in violation of the Foreign Direct Investment (FDI) policy in retail market have been received, Commerce and Industry Minister Anand Sharma in a written reply to the Lok Sabha has said.

“The RBI has informed that matters related to Bharti Walmart/Cedar Support Services Ltd and Flipkart Online Services, respectively, have been referred to the Directorate of Enforcement for further investigations,” he said.

He said violation of FDI regulations is covered by the penal provision of the Foreign Exchange Management Act, 1999. Flipkart is under the scanner for allegedly flouting FDI rules which allow e-commerce companies with foreign investment to carry out only B2B transactions not B2C.

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