E-tailer Flipkart Online Services will be probed by the enforcement directorate for allegedly violating rules pertaining to foreign direct investment in multi-brand retail laid down by the Central Government.

The Minister of State for Commerce & Industry, S. Jagathrakshakan, in a written reply to the Lok Sabha, said that references alleging that some companies were carrying out activities in violation of the FDI policy had been received.

“Violation of FDI regulations is covered by the penal provisions of the Foreign Exchange Management Act, 1999. The Reserve Bank of India has been informed that matters related to Bharti Walmart/Cedar Support Services Limited and Flipkart Online Services Pvt. Limited, respectively have been referred to the Directorate of Enforcement for further investigation,” the press note said.

Two months ago, the government allowed up to 51 per cent foreign direct investment in multi-brand retail. However, soon after, it said that e-commerce companies with FDI were not permissible in India.

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