India is expanding the e -commerce campaign with a new issue worth $ 200 million against the Wall Mart, Myntra Fashion

The Financial Crime Control Authority in India filed a complaint against the Wall Mart e -commerce giant, claiming that the company violated foreign investment rules by directing more than 191 million dollars through a relevant party plan that suffers from retail sales as wholesale.

This complaint is the last step in a broader campaign by the Indian authorities, which was previously targeting Amazon and Flipkart.

On Wednesday, the Directorate of Enforce said that the e -commerce company in Bangaluru has violated the Foreign Drainage Management Law, known as the FEMA, by engaging in the multi -branded retail trade “under the guise of criticism and wholesale”, with the use of a related entity, the e -commerce heading, as a means of retail sales through the retail structure.

India restricts foreign companies participating in wholesale business from direct sales of consumers in an attempt to protect local retailers. The law also limits sales of the group companies related to a maximum of 25 %.

Myntra failed to meet the conditions of work as wholesale business or criticism and a pregnant I mentioned (Pdf).

The agency filed the complaint against Myntra, its relevant companies, and its directors under Article 16 (3) of FEMA, 1999.

Myntra It controls about half From the country’s e -commerce market. The company also gradually Expanding the fast trade service The expansion of its arrival in high -growth categories, including home and living, as well as beauty. The company also Water test in social trade Through partnership with celebrities and bringing the accurate influences, with the likes of Instagram, YouTube and Amazon’s Live.

The complaint comes as Indian officials Holding talks with the Trump administration On a possible commercial deal with the United States.

It is said that the Moody government is in New Delhi Under pressure from the Trump administration To grant Amazon and Walmart Flipkart full access to the e -commerce market worth $ 125 billion. Moody’s government has always been Its e -commerce policy is expected to be issuedBut the sources that have already told Techcrunch that they were in the back stove, as officials were warned against not avoiding relations with the US government.

However, Amazon and Flipkart previously faced investigations by Indian agencies, including the Directorate of Enforcement. It was one of the last main measures against the two companies A raid by the Federal Agency in November at the offices of some of its sellersThose who are accused of violating foreign investment rules in the country. In April, the agency also The required sales data from the private sector and other documents Smart phone sellers, including Apple and Xiaomi, as part of its achievement in Amazon and Flipkart.

In response to the latest procedures, Myntra stated that she did not receive a copy of the complaint and support documents from the authorities, but she remained “completely committed to cooperating with them at any time.”

A company spokesman said: “In myntra, we are strongly committed to supporting all the laws in force on the ground and working with the highest standards of compliance and integrity,” said a company spokesman.

Founded in 2007, it was Myntra It was gained by the giant Flipkart company for Indian e -commerce In 2014 it was subsequently purchased by Walmart As part of the $ 1.6 billion in acquisition of Flipkart In 2018.

Upon calling, a Walmart spokesman pointed to the statement issued by Myntra.