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 (FDI) 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 (ED) in Chennai. The judge agreed with Additional Solicitor General S.V. Raju and ED Special Public Prosecutor N. Ramesh that the petitioners ought not to have rushed to the High Court without submitting their explanation to the notices issued by the Special Director, who was the adjudicating authority under the Foreign Exchange Management Act (FEMA) of 1999. Making it clear that the petitioners would be entitled to raise all grounds in their defence before the adjudicating authority, the judge ordered that the officer concerned should consider …


