FEMA violation notice: Plea by Flipkart owners dismissed

THE Madras High Court has dismissed the petitions filed by the owners of the e-commerce platform Flipkart challenging the complaint and the notices issued by the Enforcement Directorate over violations of the Foreign Exchange Management Act (FEMA) and the Transfer or Issue of Security by a Person Resident Outside India Regulations (TISPRO) over receiving foreign direct investments (FDI) and issuing of equity shares.

- EXPRESS NEWS SERVICE @Chennai

The court stated that the petitioners - Sachin Bansal and Binny Bansal - had not availed the alternative remedy available before the adjudicating authority of ED as the ground for dismissing the petitions.

Under FEMA, the court said that remedy is not available just before the civil court but also before the constitutional court, namely the high court, under section 35 of the Act.