A company that violates the law of the country must be punished. Anyway, While taking such steps, investigating agencies must ensure that they are not only impartial, But also appear fair.
If e-commerce sector companies like Flipkart and Amazon have broken Indian law, then of course strict action should be taken against them as per the provision. Both of these are American-owned companies (Walmart owns about three-fourths of Flipkart). They have the largest share of India’s e-commerce market. According to an estimate, in this market of $70 billion, Flipkart’s share is 32 percent and Amazon’s share is 24 percent. It is reported that the Enforcement Directorate raided their vendors. After that officials of these companies have been called for questioning.
It is alleged that these companies violated the law related to foreign investment. Under this law, foreign e-commerce companies cannot discriminate between sellers. Also, they cannot create their own stores by purchasing goods from vendors. Amazon and Flipkart say that they did not violate any law. But ED claims that it has solid evidence against these companies. It is undeniable that every company – whether domestic or foreign – must strictly follow the laws of the country. If a company does not do this, it must be punished. However, while taking such steps, investigating agencies must ensure that they are not only impartial but also appear impartial.
This is important in this context because over the years there has been a perception (which may be unfounded) that the Government of India has some favored industrial houses and when their interests conflict with those of a foreign (or domestic) company, Investigative agencies become hyperactive. Some economists, who have been associated with the current government in the past, have described this perception as one of the current obstacles in the way of foreign investment in India. This time is unfavorable for international business. There has been a huge decline in foreign direct investment in India this year. In this situation, it has become extremely necessary to break the above notion. Hopefully, ED will be aware of this expectation.