The planned action signals growing regulatory scrutiny of Walmart-owned Flipkart and Amazon when their sales are rapidly growing in India's $70 billion e-commerce market.

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.

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.