The Enforcement Directorate (ED) has sent a show-cause notice to Walmart’s Flipkart and its founders.
It asked them to explain the reason for not paying the penalty of $1.35 billion.
The penalty is for the alleged violation of foreign investment laws.
ED has been investigating Flipkart and Amazon.com for allegedly bypassing foreign investment laws.
The show-cause notice was sent in early July to Flipkart founders Sachin Bansal and Binny Bansal and current investor Tiger Global.
Flipkart spokesperson said that the company is “in compliance with Indian laws and regulations”.
The company will cooperate with the authorities as they investigate the issue, added the spokesperson.
Earlier, India’s brick-and-mortar retailers have come up in arms against the e-commerce giants.
They accused the platforms of favouring select sellers and using complex business structures to bypass foreign investment laws.
