<h1>E-commerce giant faces case for alleged FDI violations under FEMA Section 6(3)(b) in multi-brand retail trade scheme</h1> The Enforcement Directorate has filed a case against a major e-commerce platform and its associated companies for allegedly violating Foreign Direct Investment regulations under the Foreign Exchange Management Act. The agency alleges that the company engaged in multi-brand retail trade through an inventory-based model disguised as wholesale cash and carry, receiving approximately Rs 1,654 crore in FDI, contrary to Indian FDI policy which permits FDI only in marketplace models. The company reportedly sold most goods to a related entity, which then retailed to consumers, breaching the rule limiting intra-group sales to 25%. The entities are accused of contravening Section 6(3)(b) of FEMA and FDI guidelines. The company denies any legal violations and has expressed willingness to cooperate with authorities. The case highlights ongoing scrutiny of foreign investment compliance in Indian e-commerce.