India expands its e-commerce crackdown with a new $200M case against Walmart’s fashion arm Myntra

India’s Financial Crime Watchdog Walmart-backed fashion e-commerce giant has filed a complaint against Mintra, complaining that the company has violated the rules of foreign investment through a related party project, which has disrupted retail activities as wholesale trade.

This allegation identified the latest step in the broad crackdown of the Indian authorities, which previously targeted Amazon and Flipkart.

On Wednesday, the Enforcement Directorate said that the Bengaluru-based fashion e-commerce firm is under the management of a foreign currency, in the Multi-Brand Retail Trading, involving the retail sales route as a intermediary for a intermediary for the retail sales route through a jobble structure. Did

Local retailers limit foreign companies to wholesale businesses from selling directly to consumers in an attempt to protect the local retailers. The law also limits a maximum of 25%of sales in group companies related to the law.

Mintra failed to meet the conditions of managing as a wholesale or cash and carrying business, as all its sales were made exclusively as Vector e-commerce as agencies State (PDF)

The company has filed a complaint against Mintra, its related companies and their directors under Section 16 (3) of Fema, 1999.

Mintra About half the control The country’s overall fashion e-commerce market. The company is also slowly Its speed-trade service is being expanded And to make the home and life, as well as to make its reach in high-growing categories with beauty. Agency Water Partners with celebrities and bring micro-influencers to Instagram, YouTube and Amazon’s live preferences.

The complaint comes as an Indian officer Talk to the Trump administration About a possible trade agreement with the United States of America.

Modi government in New Delhi Under the pressure of the Trump administration To provide full access to its $ 125 billion e-commerce market owned by Amazon and Walmart. The Modi government has long been Its e-commerce is expected to publish the policyHowever, the sources had earlier told TechCrunch that it was in the back burner, because officials were careful not to break ties with the US government.

Nevertheless, Amazon and Flipkart had previously faced an investigation into Indian agencies, including Enforcement Director. Was one of the recent major steps against two companies In November some of their sellers raided by the Federal AgencyThose who have been accused of violating the rules of foreign investment in the country. In April, the company also Personally wanted sale data and other documents From smartphone vendors with Apple and Xiaomi as part of the investigation in Amazon and Flipkart.

Responding to the latest step, Mintra said that it was not a copy of the authority and supporting documents but “was fully committed to cooperating with them at any time.”

“In Mintra, we are deeply committed to holding all the applicable laws of the land and to handle the highest quality of consent and integrity,” said a spokesman for the organization.

Established in 2007, Mintra was Indian e-commerce giants earned by Flipkart Bought Walmart in 2014 and later As part of the $ 1.6 billion acquisition of Flipkart In 2018.

When contacted, a spokesman for Walmart pointed to the statement issued by Mintra.