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Income tax department searches Flipkart and Swiggy unit offices for alleged tax evasion charges


India’s Income Tax Department this week conducted searches of the offices of a Walmart Flipkart group company and local food delivery startup Swiggy for alleged tax evasion by their outside vendors, two sources told Reuters.

Searches began Wednesday at the offices of Swiggy and Instakart in the southern city of Bengaluru, the sources said.

The search of the office of Instakart, the logistics arm of e-commerce giant Flipkart, concluded Thursday night, one of the sources said.

At least 20 income tax officials visited Instakart’s office to inspect invoices issued to its suppliers, the source added.

In a statement, Flipkart said it was providing officials “with all the required information and we are extending our full cooperation,” adding that it complied with all legal and tax requirements.

Swiggy, backed by South African internet giant Naspers, also said it was fully complying with fiscal and legal mandates.

“The survey of TI officials is currently ongoing and our team is expanding its full cooperation on the matter.”

The tax department did not immediately respond to Reuters’ request for comment.

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