The Enforcement Directorate is conducting searches at 19 locations linked to Amazon and Flipkart vendors across major Indian cities. The operation follows complaints suggesting the firms are violating Foreign Direct Investment rules by manipulating sale prices and unfairly disadvantaging vendors.

The Enforcement Directorate has launched nationwide raids on Amazon and Flipkart, investigating alleged violations of the Foreign Exchange Management Act.

India's financial crime agency has raided offices of some sellers operating Amazon and Walmart-owned Flipkart in an investigation into alleged violations of foreign investment rules, three government sources said on Thursday.

The pan-India raid included searches at Amazon and Flipkart seller locations in Delhi, Mumbai, Hyderabad, and Bengaluru.

Happy Friday! Digital payments spiked during the festival of Diwali. This and more in todays ETtech Morning Dispatch.

The Enforcement Directorate (ED) is investigating prominent vendors on Amazon and Flipkart for potential violations of foreign investment rules. The ED searched several locations across India, examining documents related to allegations of unfair trade practices.

An official said ED decided to initiate its investigation under the provisions of the Foreign Exchange Management Act based on complaints that the e-commerce platforms are violating India’s FDI rules by directly or indirectly influencing the sale price of goods or services and not providing a level playing field to vendors.

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