India's financial crime agency will summon Flipkart and Amazon executives as it steps up an investigation into alleged foreign investment law violations, days after raiding some of the e-commerce firms' sellers,

Walmart-owned Flipkart and Amazon, both of which are experiencing rapid growth in India's Rs 70 billion e-commerce market, face rising regulatory scrutiny.

India's financial crime agency will summon Flipkart and Amazon executives as it steps up an investigation into alleged foreign investment law violations, days after raiding some of the ecommerce firms' sellers,

India's financial crime agency has raided offices of some sellers operating Amazon and Walmart-owned Flipkart in an investigation into alleged violations of foreign investment rules, three government sources said on Thursday.

The Enforcement Directorate (ED) conducted nationwide raids on Amazon and Flipkart sellers, investigating potential foreign investment violations and alleged favouritism towards certain sellers.

Amazon and Flipkart have maintained they comply with Indian laws, but the Enforcement Directorate has for years been investigating allegations the companies, through select sellers, exert control over inventory of goods.

Indian authorities will reportedly summon Flipkart and Amazon executives as investigation enhances in the alleged foreign investment law violations, media reports said. The financial crime agency will call on the executives of the ecommerce companies as they step up the investment,

The Enforcement Directorate (ED) will summon Flipkart and Amazon executives as part of its probe on foreign investment rule violations. The financial crime agency will probe five years of data.