FEMA case against Flipkart founders: Madras HC dismisses cases filed by Sachin and Binny Bansal

The Madras High Court has dismissed a batch of writ petitions filed by popular e-commerce platform Flipkart’s founders Sachin Bansal and Binny Bansal and a few others in connection with an alleged violation of the Foreign Direct Investment policy involving ₹23,451 crore. Justice S. Sounthar rejected all the writ petitions pending since 2021, with liberty to the petitioners to submit their explanations within 30 days from the receipt of his order to the show cause notices issued to them by the Special Director of the Directorate of Enforcement in Chennai. Pursuant to the complaint, the Special Director of the ED issued show cause notices to the two business partners, FOL, FPLS, FIPL, Accel India Ventures, its nominee director Subrata Mitra, Tiger Global Five FK Holdings, its nominee director Mr. Fixel and WS Retail on July 1, 2021, seeking an explanation as to why they should not be proceeded against. The recipients of the show cause notices had filed a batch of 11 writ petitions in the Madras High Court challenging the complaint lodged by the Deputy Director as well as the subsequent show cause notices issued by the Special Director.