The ED is scrutinising whether Amazon and Flipkart controlled vendors in ways that violate regulations, which mandate that these platforms operate purely as intermediaries and not as inventory-based b

The Enforcement Directorate is investigating the possible violation of the Foreign Direct Investment (FDI) code agreement between e-commerce giants Amazon, Flipkart, and the government of India.What's The Issue?

ED is investigating alleged violations under the Foreign Exchange Management Act (Fema) that are ordinarily civil offences entailing monetary penalties. Earlier this month, the agency conducted nationwide searches at 19 sites related to large sellers on Amazon and Flipkart in New Delhi,

ED's aim is to know if the ecommerce majors were exercising control over vendors, which violates FDI rules as they can only act as platforms.

The report noted that ED is investigating the alleged violations under the Foreign Exchange Management Act (FEMA) that are typically civil offences including monetary penalties

The Enforcement Directorate (ED) has now shifted its focus to investigating into ecommerce players Amazon and Flipkart and their vendors

Under India's FDI rules, e-commerce platforms are prohibited from exercising control over vendors and are required to operate solely as neutral intermediaries

This and more in today’s ETtech Morning Dispatch.Also in the letter:■ AI domain trade■ Ethics code for AI firms■ X monetisation challengesED shifts focus to Amazon and Flipkart ties with sellers 115398206The Enforcement Directorate (ED) has shifted the focus of its ecommerce probe to whether arrangements between Amazon and Flipkart and their vendors violated foreign direct investment (FDI) norms,