India’s financial crime guard has complained about the Walmart-Tukelkäni giant Myntra, an electronic trade giant, claiming that the company violated foreign investment rules by channeling more than $ 191 million through a related system that covered the retail wholesale.
This complaint implies the latest change in the wider fight against the Indian authorities, which formerly targeted Amazon and Flipkart.
In other words, the enforcement department said that a Bengaluru-based electricity trade company insulted the FEMA currency management law, known as “wholesale retail cash”, using the associated community, vector-trading, intermediate.
India restricts foreign companies that do wholesale from making direct sales to consumers to protect local retailers. The law also restricts sales related to group companies up to 25 %.
Myntra did not fulfill the terms of operation as a wholesale or monetary and transportation business, as all its sales were made exclusively for the Vector’s online store, the Office the said (Pdf).
The Agency filed a complaint with Myntra, its related companies and its leaders under section 16 (3) of the FEMA, 1999.
Myntra controls about half in the country’s general form of electronic trade. The company also gradually expands its service in the quick trade and expands its dimension in rapidly growing classes, including home and living and beauty. Also the company is Testing Waters in Social Trade In collaboration with celebrities and bringing micro-influencers by receiving Instagram, YouTube and Amazon’s Live.
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The complaint becomes Indian officials Keep discussions with Trump’s administration in potential trading with the United States.
New Delhi Mod’s Board of Directors has been announced Under pressure from Trump’s administration Acknowledges the Flipkart owned by Amazon and Walmart with full access to its $ 125 billion e -commerce market. Mod’s government has long been expected to release electronic tradingBut the sources previously told Techcrunch that it was in the back burner because officials are careful not to have relationships with the US government.
Nevertheless, Amazon and Flipkart have previously encountered Indian agencies, including the enforcement department. One of the recent major actions against two companies was reported to a Federal Office in November of the offices of some sellersaccused of violating foreign investment rules in the country. In April also the Agency Privately applying for sales information and other documents Smartphone vendors, including Apple and Xiaomi, as part of its test on Amazon and Flipkart.
In response to the last activity, Myntra stated that it had not received a copy of the appeal and supported the authorities’ documents, but remained “fully committed to cooperation with them at any time”.
“At Myntra, we are deeply committed to maintaining all applicable laws of the country and working with the highest compliance and integrity requirements,” the company spokesman said.
Founded in 2007, Myntra acquired India’s Electronic Trade Giant Flipkart in 2014, and Walmart later purchased it as part of the $ 1.6 billion purchase in 2018.
When contacted, the Walmart spokesman pointed out about the statement made by Myntra.
