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,

The Enforcement Directorate is intensifying its investigation into Amazon and Flipkart for alleged violations of foreign investment regulations. The agency conducted raids on sellers associated with both companies.

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 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.

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,