New Delhi2 minutes ago
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The headquarters of the e-commerce company Mantra are in Bangalore. (File Fota)
The Enforcement Directorate (ED) has registered a case of violation of the Foreign Exchange Management Act (FEMA) by the Enforcement Directorate (ED) on the online shopping platform, Mantra and its associate companies. The case is related to foreign currency violations of about Rs 1,654 crore.
The ED was informed that Messrs Mantra Designs Private Limited (Mantra) and its associate companies were doing multi -brand retail businesses in the name of ‘Wholesale Cash and Carrie’, which is against the policy of foreign investment (FDI).
Sources say that the ED has also started investigating some of the company’s documents and financial records. It is being seen whether Mantra misrepresented foreign funds or ignored the rules.
What is FEMA Act? The Foreign Exchange Management Act i.e. FEMA was introduced to replace an old Act FERA (Foreign Exchange Regulation Act) in the year 1999. The main objective of the introduction of FEMA in India was to facilitate external trade and payment.
FEMA has outlined procedures for all foreign exchange transactions in India. Under this Act, the ED has been given the responsibility of investigating suspected violations of foreign exchange laws and rules, taking action against those who commit violations and imposing fines on them.
Flipkart Mining’s parent company Flipkart is Mantra’s parent company. In 2014, Minyantra was bought by Flipkart for Rs 2,000 crore. At the time when Flipkart bought Mantra, she had a total of 1,50,00 products of 1,000 brands. The company’s structure was not changed, even today the independent works.
Customers doing 4 crore transactions near Minantra Mininga has a strong user base. According to media reports, the company has around 4 crore transactions customers. Mining’s revenue from operations in FY 2021-22 was Rs 3,501 crore. In FY 2023, it increased by 25% to Rs 4,375 crore on an annual basis.
