ED offers Flipkart to close FEMA violation case by paying penalty

The option was given by the ED to Flipkart last week under the compounding rules of FEMA (Foreign Exchange Management Act)

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The Enforcement Directorate (ED) is learnt to have offered the option of closing a FEMA violation case against e-commerce major Flipkart if the Walmart group firm admits its mistake and pays a penalty, sources aware of the development said.

The option was given by the Enforcement Directorate to Flipkart last week under the compounding rules of FEMA (Foreign Exchange Management Act).

“ED has given the option of compounding to Flipkart. ED has asked Flipkart to admit its mistake, pay a penalty and dismantle the seller network associated with it,’ a source said.

‘An email query sent to Flipkart elicited no reply.

The ED had also summoned Amazon India to check the status of the company.

When contacted, an Amazon India spokesperson said, “We do not comment on ongoing investigations.