The Enforcement Directorate (ED) has issued a show-cause notice of nearly Rs 10,600 crore to Walmart-owned e-commerce major Flipkart and its promoters for alleged violation of the foreign exchange law.
The notice under various sections of the Foreign Exchange Management Act (FEMA) was issued last month to 10 persons, including Flipkart, its founders Sachin Bansal and Binny Bansal, among others, sources said.
The notice followed completion of investigation and the charges include violation of the foreign direct investment (FDI) rules as also regulations relating to multi-brand retail in India. The company and its executives will now face adjudication that will be conducted by a special director-rank officer of the agency based in Chennai, they said.
Proceedings under the FEMA are civil in nature and the final penalty, post adjudication, can be at least three times the amount contravened under the law.