On Thursday, the Enforcement Directorate (ED) initiated a nationwide search aimed at sellers connected to major e-commerce sites like Amazon and Flipkart as part of an alleged money laundering probe. Sources told CNBC-TV18 that the raids are intended to reveal financial discrepancies among vendors associated with these well-known online platforms. The countrywide operation includes searches at different seller sites and the subsidiaries of these e-commerce giants in Delhi, Mumbai, Hyderabad, and Bengaluru. The ED’s investigation aims to find and collect evidence concerning claims of money laundering activities that might have been enabled by these platforms, as reported by CNBC-TV18. Livemint was unable to independently confirm this information. Sources indicate that the ED is looking into the possible exploitation of these platforms by certain sellers who may have participated in unlawful financial activities, potentially using sales on Amazon and Flipkart to route and conceal illegal funds. Also Read | CCI considers investigation into quick commerce companies. Amazon and Flipkart, two of the largest e-commerce platforms in India, have been under examination for their business practices in the past. This recent investigation is aimed at third-party sellers and their transactions on these platforms, with an emphasis on adherence to the Prevention of Money Laundering Act (PMLA), according to the report. Also Read | Nevada, North Carolina, Arizona US Polls LIVE: the contest continues in ‘close call’ scenarios. The ED’s actions emphasize the government’s continuous attempts to promote more transparency and accountability in India’s swiftly expanding e-commerce industry, which is facing heightened regulatory examination. Neither Amazon nor Flipkart has released official comments about the raids. Earlier this September, an investigation by India’s antitrust authority reportedly found that Amazon and Walmart’s Flipkart violated local competition laws by giving preferential treatment to certain sellers on their platforms. Documents reviewed by Reuters indicate that the Competition Commission of India (CCI) determined that both companies favored specific sellers with whom they had business relationships, allowing those sellers to be more visible in search results, which put other vendors at a disadvantage. The CCI began its investigation in 2020 to look into claims that Amazon and Flipkart prioritized certain listings related to business agreements. The results, presented in two distinct reports—a 1,027-page document for Amazon and a 1,696-page document for Flipkart, both dated August 9—showed that the two e-commerce leaders had created a setting in which favored sellers were regularly promoted, affecting competition in the market. Stay updated with all the Business News, Corporate News, Breaking News Events, and Latest News Updates on Live Mint.
