News Delhi HC orders ED to probe whether ecom companies like Snapdeal, Jabong, Myntra flouted FDI rules

[Deepu]

The Delhi High Court ordered the Enforcement Directorate (ED) on Thursday to find out whether ecommerce companies such as Snapdeal, Jabong, Myntra and Amazon-owned Junglee have flouted the country's foreign direct investment (FDI) rules by deploying overseas funds.

The court was hearing a case filed against the government by shoe shop owners on the grounds that India bars overseas capital in the sector and that such investments were also in breach of the Foreign Exchange Management Act. ..

Read more at:
Delhi HC orders ED to probe whether ecommerce companies like Snapdeal, Jabong, Myntra have flouted FDI rules - The Economic Times

 

[IndianMascot]

Some of them would definitely be flouting the rules.

 

[scorpionking76]

What type of violation are they talking about?

 

[Technoglitch]

Foreign investments,

 

[scorpionking76]

Ok, but how they violated is my question

 

[IndianMascot]

Must have acquired excess funding than allowed.

 

[scorpionking76]

Nope, all money comes through funding in the form of either institutional investors or FDI.

 

[IndianMascot]

If it would have been all good, ED won;t have put nose into it. Looks like they didn't get their cut.

 

[scorpionking76]

Yes. That is what even I wanted to know

 

[Aviral Sangal]

The main cause of investigation is in india FDI is not allowed for ecom dealing in retail or multi brand retail. So they are accused of using the money they raised from foreign soil is being pumped into the business to offer discounts which is against the policy.