Begin typing your search above and press return to search.
Homechevron_rightBusinesschevron_rightED notice to Flipkart...

ED notice to Flipkart on discount sale


Bangalore: The Enforcement Directorate (ED) is reported to have issued a notice to leading e-retailer Flipkart on its Oct 6 "Big Billion Day" discount sale offer being in violation of statutory rules.

Though the city-based Flipkart declined to confirm if it had received the notice, its spokesperson told IANS Tuesday that the company complied with the law and would cooperate with the authorities when required.

"We are in complete compliance with the laws of the land and will cooperate with authorities when required," the spokesperson said.

The ED notice has also sought the company's response on the charge it had facilitated transactions in violation of the Foreign Exchange Management Act (FEMA) during the mega sale.

The notice comes following complaints from retail traders last week to the government that the e-commerce major was indulging in unfair trade practices and sought to regulate e-commerce business in the country.

Taking note of the concerns expressed by the Confederation of All India Traders on the fallout of unfair competition among e-retailers on their offline retail sales, union Commerce and Industry Minister Nirmala Sitharaman said Oct 8 that her ministry would look into them.

"We have received many inputs. Lot of concerns has been expressed. We will look into it," Sitharaman told reporters in New Delhi.

The online price war, triggered by Flipkart, with steep discounts, crazy deals and lucky draws on a range of products, has brought to the fore the threat the sun rise e-tail sector poses to the traditional retail sector.

Flipkart's sale also resulted in its website crashing for hours and outrage in the social media for "cheating" its online shoppers, with deceptive offers and false promises.

Flipkart, however, claimed that it got a billion hits and sold products worth $100 million (Rs.600 crore).

Show Full Article
Next Story