The Enforcement Directorate (ED) plans to file a final complaint against e-commerce giants Amazon and Flipkart under the Foreign Exchange Management Act (FEMA) in the next three months.

Investigations have uncovered direct connections between these companies and their preferred sellers, raising concerns about potential violations of foreign direct investment (FDI) regulations. The ED has questioned the top five sellers on both platforms and found that many have close ties to Amazon and Flipkart. Substantial evidence, including email communications from sellers, suggests that the e-commerce firms exercise direct control over their preferred sellers, influencing aspects such as inventory management and profit margins.

While Amazon and Flipkart have chosen not to comment on the findings, reports indicate that neither company has received any summons or communication from the ED thus far.