'We are compliant to Indian laws', says Flipkart on ED notice

Responding to a query on the notice, the company said in a statement: "Flipkart is in compliance with Indian laws and regulations, including FDI regulations.""We will cooperate with the authorities as they look at this issue pertaining to the period 2009-2015 as per their notice," it said. A senior ED official related to probe told IANS, "Yes, a notice has been issued to Flipkart, its founders and nine others."

As the Enforcement Directorate has served a notice to e-commerce major Flipkart over alleged violation of foreign exchange norms, the company has said that it has been compliant to the Indian laws and will cooperate with the authorities in the matter which pertains to 2009-2015.

Responding to a query on the notice, the company said in a statement: "Flipkart is in compliance with Indian laws and regulations, including FDI regulations."

"We will cooperate with the authorities as they look at this issue pertaining to the period 2009-2015 as per their notice," it said.

The Enforcement Directorate (ED) has issued notices to Flipkart, its founders and nine others in connection with foreign exchange violation case, officials said on Thursday.

ALSO READ | Buying Support, Global Cues Buoy Indices; Telecom Stocks Rise

A senior ED official related to probe told IANS, "Yes, a notice has been issued to Flipkart, its founders and nine others."

He, however, did not reveal the details of the persons to whom notices have been sent.

According to financial probe agency sources, in the notice they have asked to explain why they should not face a penalty of $1.35 billion for alleged violation of foreign investment laws.

The source said that Flipkart and its other holding firms including one in Singapore violated Foreign Exchange Magamenet Act (FEMA) while attracting foreign investments between 2009 and 2015.

ALSO READ | Petrol, Diesel Prices Unchanged For 19th Consecutive Day

According to ED, the investigating agency has found that WS Retail, a firm incorporated in 2009 to transact with customers, was allegedly acting as a front for retail operations of Flipkart Online Services, incorporated in 2008.

The ED investigation started after the RBI had raised the issue.

In 2018, Walmart took a majority stake in Flipkart. Sachin Bansal sold his stake to Walmart during the deal, while Binny Bansal retained a small stake.