Top executives of e-commerce giants Amazon and Flipkart are under the scanner of the Enforcement Directorate (ED) over alleged violations of foreign investment regulations, sources have told India Today.

An ED probe has reportedly found that the e-commerce giants have oversight over their sellers’ operations, including control over warehouses, inventory and even profit margins

The ED has reportedly quizzed the 'top' five sellers of both firms and found that many are former employees or relatives of former associates of Amazon and Flipkart

A source said, “The sellers covered during the searches were summoned and have been questioned to explain certain transactions and arrangements. Documents are being studied thoroughly. The main focus is to ascertain whether Amazon and Flipkart operated through a preferred set of sellers,

The Enforcement Directorate (ED) has uncovered evidence suggesting that Amazon and Flipkart exert significant control over their preferred sellers. Investigations revealed close ties between these sellers and the e-commerce giants,