Flipkart & Bharti Walmart under the scanner for violating FDI regulations

Flipkart & Bharti Walmart under the scanner
Ecommerce companies are under the scanner of the Enforcement Directorate for the alleged violation of FDI regulations. The companies that are being investigated are Flipkart Online Services and cash & carry chain Bharti Walmart.

In a written reply to the Lok Sabha, Commerce and Industry Minister Anand Sharma said, "The RBI has informed that matters related to Bharti Wal-Mart/Cedar Support Services Ltd and Flipkart Online Services, respectively, have been referred to the Directorate of Enforcement for further investigations."

Sharma said violation of FDI regulations is covered by the penal provision of the Foreign Exchange Management Act, 1999.

As per the rules, E-commerce companies with foreign investments are allowed to do wholesale trading with B2C companies that are unrelated and can do wholesale trading with a group company only if it does not exceed 25 per cent of its total turnover and is used for internal consumption.

Read more about: bharti, walmart, fdi
Story first published: Wednesday, December 5, 2012, 13:30 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?