The Enforcement Directorate (ED) is conducting a pan-India search targeting sellers associated with major e-commerce platforms, including Amazon and Flipkart, in connection with an alleged money laundering investigation. Sources told CNBC-TV18 that the raids are focused on uncovering financial irregularities among sellers linked to these prominent online marketplaces.

The nationwide operation involves searches at various vendor locations as well as subsidiaries of these e-commerce giants. The ED probe aims to identify and gather evidence related to alleged money laundering activities that may have been facilitated through these platforms, CNBC-TV18 reported.

Livemint could not independently verify this news development.

According to the sources, the ED is investigating the potential misuse of these platforms by some sellers who allegedly engaged in illegal financial practices, possibly using sales on Amazon and Flipkart as a means of channeling and concealing illicit funds.

Amazon and Flipkarttwo of India’s largest e-commerce platforms, have previously faced scrutiny over their business practices. However, this latest investigation specifically targets third-party sellers and their transactions on these sites, focusing on compliance with the Prevention of Money Laundering Act (PMLA), according to the report.

ED’s action highlights the government’s continued efforts to ensure greater transparency and accountability in IndiaThe fast-growing e-commerce sector, which has increasingly come under regulatory scrutiny. Both Amazon and Flipkart are yet to issue official statements regarding the raids.

Earlier this year, in September, an investigation by India’s antitrust authority concluded that Walmart-owned Amazon and Flipkart violated local competition laws by favoring certain sellers on their platforms. According to documents reviewed by Reuters, the Competition Commission of India (CCI) found that both companies promoted select sellers with whom they had business ties, allowing those sellers to appear more prominently in search results, which put other sellers at a disadvantage.

The CCI initially launched the investigation in 2020 to look into allegations that Amazon and Flipkart prioritized certain listings related to trade agreements. The findings, detailed in two separate reports — a 1,027-page document for Amazon and a 1,696-page document for Flipkart, both dated Aug. 9 — indicated that the two e-commerce giants fostered an environment where preferred sellers had were constantly highlighted, having a competitive impact on the market.