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November 27, 2012

Deal Alert: Flipkart to be probed along with Bharti-Walmart for FDI violations


The Enforcement Directorate will look into the alleged violation of FDI regulations by e-commerce company Flipkart Online Services and cash & carry retail chain Bharti Walmart. The RBI has referred matters related to the alleged circumventing of law by Flipkart to the Enforcement Directorate. Flipkart is under the scanner for allegedly flouting FDI rules which allow e-commerce companies with foreign investment to carry out business-to-business or B2B transactions but not business to consumer or B2C transactions by creating complex structures that may not be permissible. It is alleged that Flipkart has flouted these rules. 

From the Venture Intelligence PE Deal database: Flipkart has raised $180-M from investors including Tiger Global and Accel India.