Wednesday 15 October 2014

ED to Probe Flipkart ‘Big Billion Day’ Sale

‘Big Billion Day’ sale by Flipkart continued to make news around the world as India’s Enforcement Directorate (ED) now said it will probe if any norms were violated during the single day sale on October 6.

The ED has sent a letter to Flipkart on the basis of complaints received after the Big Billion Day sale and is investigating whether any norms were violated during the sale day or not, though sources claim that no evidence has been found against the e-tailer so far.

A separate probe on Flipkart is underway since 2012 for alleged violation of the Foreign Exchange Management Act (FEMA).Flipkart did not specifically comment on the matter but said the company was in “complete compliance with the laws of the land and will cooperate with authorities when required”. 

After the Big Billion Day sale, many consumers were left disgruntled because of poor consumer experience and inflated prices. The popular response to the sale also left competitors bitter with the traditional traders’ lobby complaining to the department of industrial policy and promotion, seeking policy intervention.


The Competition Commission of India has initiated a preliminary enquiry into the matter, but there are indications that there may not be a case of predatory pricing against Flipkart. 

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