Flipkart slapped with over Rs 47 crore fine!


It seems like ecommerce is fast gaining the attention of state governments in India, but unfortunately in the wrong way. Recent news has revealed that the Kerala government has fined ecommerce companies a whopping Rs 54 crore, which includes four companies namely Flipkart, Jabong, Vector ecommerce and Robemall apparels. Of these, Flipkart has been hit the hardest with a fine amounting to Rs 47.15 crore, for the years 2012-13 and 2013-14.

This fine has apparently been slapped v=because these companies have allegedly been carrying out illegal business activities in the state.

Double blow

Flipkart had earlier been fined for alleged irregularity in operations, which cost it a comparatively meagre Rs 23.51 crore.

Could this spate of fines be a result of the fact that there is no clear legal framework for ecommerce in India? Is this causing ecommerce companies to step over the legal line without even releasing that they are in the wrong?

In either case, it would greatly help if the Indian government takes a call and declares a uniform set of national regulations that could help ecommerce players to abide by rules when executing business in different Indian states.

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