Walmart-owned Flipkart on Thursday said the company is in compliance with Indian laws, including FDI regulations, and will cooperate with the Enforcement Directorate on the notice sent to the e-commerce major.
The Enforcement Directorate (ED) has issued a show cause notice of Rs 10,600 crore to Flipkart and its promoters for alleged violation of the foreign exchange law, official sources said on Thursday.
When contacted, Flipkart said it 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,” Flipkart added.
Comments could not be immediately elicited from the founders.
As per sources, the notice under various sections of the Foreign Exchange Management Act (FEMA) was issued to a total of 10 noticees last month that includes Flipkart, its founders Sachin Bansal and Binny Bansal among others.
The notice was issued after completion of investigation and the charges include violation of foreign direct investment (FDI) rules and those that regulate multi-brand retail, they added.
The case of alleged FDI rules violation against Flipkart has been under the ED scanner since 2012, and the agency, as per official sources, has found alleged violations of FEMA under various counts including an instance of transfer and issue of security to a person/entity outside India.