ED finds FEMA Violations, Flipkart likely to be fined over 1000 crores

[swatkats]

After over two years of probe Enforcement Directorate is ready to slap a showcause notice to Flipkart.

Top sources in the Directorate told ET Now that, " Our investigation is over and our Bangalore team has found evidence of FEMA violation against Flipkart." Adding that a showcause notice will be issued soon.

The source who refused to be identified explained that India's top e-commerce company had violated provisions of FEMA as WS Retail, the holding company had investments from companies overseas.

FDI norms in India do not allow FDI in e-commerce especially in business to consumer models. In 2013, a year after ED's probe began, Flipkart changed its business model allowing buyers and sellers to deal independently on their platform.

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst


Someone on this forum was arguing with me, Flipkart Still not proved guilty. Here they are..

FlipFart, Y U SAY NO TO FDI in Ecomm?

 

[?dOuBtFiRe?]

When it finally happens, will this make FKT close shop. The answer is NO. probably ED opened its eyes after the 1Billon influx in FKT coffers. Some of this money may find itself in others pockets too.

 

[ayanavish]

When it finally happens, will this make FKT close shop. The answer is NO. probably ED opened its eyes after the 1Billon influx in FKT coffers. Some of this money may find itself in others pockets too.

Instead of "some" it will be "most" and "may" would be "will".

 

[swatkats]

Fine amount = 15% of their Annual Revenue. Moreover they are not profitable as of now, Certainly will have a huge impact on the future investments and with the present investors.