Flipkart in News : Fear of 1000 Crore Penalty, 400 ‘Crorepati’ Employees
Around 400 employees of Indian E-commerce heavyweight Flipkart have become ‘Crorepatis’ as a result of the latest funding which gave Flipkart a valuation of around $7 billion. “About 400 of the employees who own a stake have now become crorepatis,” said a source with direct knowledge of the employee stock option scheme at Flipkart. Flipkart managed to collect $1 billion funding last month which increased its worth to $7 billion.
Flipkart has about 7,000 full-time employees and out of the one-fourth have stakes in the company.
Right at the top level, approximately 20 employees who are at the post of senior vice-president or above and joined over two years ago are now having stocks of worth $1 million, it means that their stock options are worth at least Rs 6 crore on paper.
On the other hand according to a report The Enforcement Directorate is looking to give a show-cause notice to Flipkart over alleged FEMA violation. According to the report, the e-tailer may face a penalty of over Rs 1,000 crore.
A source said Flipkart had violated FEMA provisions because WS Retail, one of the biggest suppliers of Flipkart, had investments from foreign companies. It should be noted that Indian government rules do not permit FDI in e-commerce currently.
