inline text for better readability
The Enforcement Directorate (ED) conducted searches at the warehouses of sellers and vendors of e-commerce giants Flipkart and Amazon as well as quick commerce players Swiggy and Blinkit, a highly placed source from one of the companies told DH.
The searches are being conducted in warehouses of 16 vendors and sellers across Mumbai, Bengaluru, Delhi and Hyderabad.
ED is mandated with the investigation of offences of money laundering such as Prevention of Money Laundering Act, 2002 as well as Foreign Exchange Management Act, 1999 (FEMA) and Fugitive Economic Offenders Act, 2018 (FEOA).
“While FEMA might be a possibility, other reasons could have also played out. In this case, the latter seems more likely. We are yet to find the actual reason for the search,” the source added.
It may be recalled that All India Consumer Products Distributors Federation (AICPDF) had recently alleged that FMCG manufacturers have been using quick commerce and e-commerce platforms as dumping grounds for near-expiry and non-movable stocks dressed up with hefty discounts.
The industry body had raised concerns with the Ministry of Consumer Affairs saying the practice threatens both the retail trade sector and consumers across the country.
“The searches could have been fueled by these allegations as well,” the source noted.
Published 07 November 2024, 14:38 IST
www.deccanherald.com
