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 is intensifying its investigation into Flipkart and Amazon for alleged foreign investment law violations. This follows recent raids on sellers associated with these e-commerce giants.

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 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.

Indian laws prohibit foreign e-commerce players from holding inventory of goods they can sell on their website