Thursday, October 16, 2014

Flipkart sale: ED issues notice; may impose Rs 1000 cr fine

There were many complaints from traders on Flipkart's massive discount sale last week. The government had assured that it will look into the concerns and take a call on whether more clarity is required on e-commerce retail business.

In a big setback to Flipkart, the Enforcement Directorate has issued notice to them questioning them over their recent billion day sale. The ED is likely to impose a penalty of Rs 1,000 crore on the e-commerce giant. 

There were many complaints from traders on Flipkart's massive discount sale last week. The government had assured that it will look into the concerns and take a call on whether more clarity is required on e-commerce retail business. 

"We have received many inputs. Lot of concerns have been expressed. We will look into it," Commerce and Industry Minister Nirmala Sitharaman had said. 

Flipkart's 'Big Billion Day' sale had offered steep discounts on various products, raising concerns among small and big traders that such campaigns would badly affect players in the traditional retail market. 

Responding to the news, Flipkart issued a statement saying: "We are in complete compliance with the laws of the land and will co-operate with authorities when required."

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