CHENNAI: Flipkart co-founder Sachin Bansal on Friday moved the Madras High Court challenging the Rs 10,600 crore Foreign Exchange Management Act violation notice issued by the Enforcement Directorate (ED) in July 2021.
The notice was issued against Sachin Bansal and others for alleged non-compliance with a condition under the Foreign Direct Investment (FDI) Policy of 2010 in respect of issuance of shares of certain Flipkart group companies to foreign investors during 2009 to 2014.
Bansal in his petition has asked the court to quash the notice as it is illegal and arbitrary. According to the petitioner, though he was co-founder of the company, he ceased to have any association with Flipkart and its group after it was acquired by Walmart in 2018.
Bansal has challenged the notice on the primary ground that it has been issued after an inordinate delay of 12 years after the relevant transaction. Allowing the adjudication proceedings to continue after a significant lapse of time will only be unjust to the petitioner, the petition said.
Bansal in his plea mentioned he cooperated in the investigation by the ED in 2012-15. Admitting the plea, Justice R Mahadevan observed why authorities failed to take action on the alleged violation for the past 12 years and directed ED to file a response in three weeks.