ED Raids On Several Online Sellers

Nearly 24 such seller locations linked to e-commerce platforms including Amazon and Flipkart, were being raided by the regulator in cities like Delhi, Mumbai, Hyderabad, and Bengaluru

New Delhi: The Enforcement Directorate (ED) on Thursday conducted raids on multiple sellers across the country, linked to e-commerce platforms including Amazon and Flipkart, over alleged money laundering activities. According to reports, the ED was conducting a pan-India search against subsidiaries and sellers of leading e-commerce players. Nearly 24 such seller locations were being raided by the regulator in cities like Delhi, Mumbai, Hyderabad, and Bengaluru.

As per sources, the ED investigation was underway related to alleged Foreign Exchange Management Act (FEMA) regulations.

The ED raids aim to find evidence related to alleged money laundering activities that may have been facilitated through online e-commerce platforms. The regulator or e-commerce players did not immediately comment.

Amazon and Flipkart have previously faced scrutiny in the country regarding their business practices. In September, a probe by the Competition Commission of India (CCI) reportedly found that Amazon and Flipkart breached local competition laws by favouring specific sellers on their platforms. Meanwhile, the Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, is also examining numerous complaints related to the use of dark patterns and planning a crackdown on online e-commerce companies violating consumer protection laws.