New Delhi: Walmart-owned Flipkart On Thursday said the company is in compliance with Indian laws, including FDI rules, and will cooperate with the Enforcement Directorate on a notice sent to the e-commerce major.
Official sources said on Thursday that the Enforcement Directorate (ED) has issued Rs 10,600 crore show cause notice to Flipkart and its promoters for alleged violation of foreign exchange law.
When contacted, Flipkart said that it is in compliance with Indian laws and regulations including FDI norms.
“We will co-operate with the authorities as they look into the issue relating to the period 2009-2015 as per their notice,” Flipkart said.
Comments could not be immediately obtained from the founders.
According to sources, under various sections of the notice foreign exchange management act (FEMA) last month issued a total of 10 notices to Flipkart, its founders Sachin Bansal and Binny Bansal.
He said the notice was issued after the completion of the investigation and the charges included violation of Foreign Direct Investment (FDI) rules and regulating multi-brand retail.
The alleged FDI rules violation case against Flipkart has been under the ED scanner since 2012, and the agency has found alleged violations of FEMA in various cases, including transfer and issuance of security to an individual/entity, according to official sources. An example is included. outside India.
Specifically, the US-based retail giant Walmart Inc In 2018 it bought a 77 percent stake in Flipkart for $16 billion. Its founders and many of its investors had exited partially or wholly at the time. Sachin Bansal exited Flipkart after selling his 5.5 per cent stake.
last month, flipkart group had announced to raise USD 3.6 billion (approximately Rs 26,805.6 crore) in funding under the leadership of GICCanada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, the e-commerce giant is valued at USD 37.6 billion.
With this deal, softbank Re-entered Flipkart’s cap table. When Walmart bought a stake in Flipkart, SoftBank sold about 20 percent of its stake.
Flipkart, which competes with companies including Amazon and Reliance JioMart in the Indian e-commerce space, has seen significant growth over the past several years.
Official sources said on Thursday that the Enforcement Directorate (ED) has issued Rs 10,600 crore show cause notice to Flipkart and its promoters for alleged violation of foreign exchange law.
When contacted, Flipkart said that it is in compliance with Indian laws and regulations including FDI norms.
“We will co-operate with the authorities as they look into the issue relating to the period 2009-2015 as per their notice,” Flipkart said.
Comments could not be immediately obtained from the founders.
According to sources, under various sections of the notice foreign exchange management act (FEMA) last month issued a total of 10 notices to Flipkart, its founders Sachin Bansal and Binny Bansal.
He said the notice was issued after the completion of the investigation and the charges included violation of Foreign Direct Investment (FDI) rules and regulating multi-brand retail.
The alleged FDI rules violation case against Flipkart has been under the ED scanner since 2012, and the agency has found alleged violations of FEMA in various cases, including transfer and issuance of security to an individual/entity, according to official sources. An example is included. outside India.
Specifically, the US-based retail giant Walmart Inc In 2018 it bought a 77 percent stake in Flipkart for $16 billion. Its founders and many of its investors had exited partially or wholly at the time. Sachin Bansal exited Flipkart after selling his 5.5 per cent stake.
last month, flipkart group had announced to raise USD 3.6 billion (approximately Rs 26,805.6 crore) in funding under the leadership of GICCanada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, the e-commerce giant is valued at USD 37.6 billion.
With this deal, softbank Re-entered Flipkart’s cap table. When Walmart bought a stake in Flipkart, SoftBank sold about 20 percent of its stake.
Flipkart, which competes with companies including Amazon and Reliance JioMart in the Indian e-commerce space, has seen significant growth over the past several years.
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