India’s financial crime agency has raided the offices of sellers operating Amazon and Walmart-owned Flipkart as part of an investigation into alleged violations of foreign investment rules, two government sources said on Thursday.

The searches come weeks after Reuters reported that India’s antitrust body found the two companies and their sellers violated competition laws by giving priority to select sellers on their platforms. Both companies have claimed that they comply with Indian laws.

A senior government source said raids were carried out in New Delhi, Mumbai and Bengaluru, but did not name the vendors whose offices were raided.

“The raids on Amazon and Flipkart sellers are part of the ED probe… for alleged violations of foreign exchange laws,” the first government source with direct knowledge said.

Amazon and Flipkart did not immediately respond to requests for comment. A representative for the financial crime agency said it had no immediate comment.

The raids are the latest setback for Amazon and Flipkart, which see India as a key growth market where e-commerce sales are growing rapidly.

The Enforcement Directorate has been investigating both e-commerce giants for years for allegedly circumventing foreign investment laws that strictly regulate multi-brand trading and restrict such companies from operating a marketplace for sellers.

The first government source said Thursday that it was conducting the final searches based on the antitrust body’s observations in its recently concluded investigation into the two companies.

Those Amazon and Flipkart antitrust investigation reports from August, which are not public but seen by Reuters, said the platforms “had complete control over inventory and the sellers are just name-lending businesses.”

A 2021 Reuters investigation based on Amazon’s internal documents showed that the company exercised significant control over the inventory of some of its biggest sellers, even though Indian laws prohibit foreign players from owning product inventory.

India’s commerce minister publicly criticized Amazon in August, saying its investments in India were often used to cover its business losses, adding that such losses “reek of predatory pricing.”