Traders' body CAIT today said it has filed a complaint against Flipkart with the Enforcement Directorate for alleged violation of the government's foreign direct investment (FDI) policy. CAIT in its complaint to ED said that Flipkart in the guise of operating under a marketplace model is actively engaged in the inventory-based model of e-commerce. The FDI policy provides that an E-commerce entity providing a marketplace will not exercise ownership over the inventory -- goods purported to be sold. CAIT further claimed that Flipkart is also actively involved in selling Extended warranty to customers directly. "Flipkart (either directly or through companies over which they have control over/ownership stake in/ affiliate) is directly selling a service to customers directly in violation of the FDI Policy," it added.

Source: dna June 01, 2018 08:45 UTC