Flipkart files FIR against vendor, employee in fake Skechers case

In what could be early signs of a potential legal battle between an e-commerce major and its vendor, Flipkart has filed a first action report (FIR) against Marcowagon Retail Private Limited (MRPL) and one its own employees for cheating, fraud, forgery, and breach of trust. Flipkart, as per people aware of the matter, has accused the vendor and the employee of colluding and selling sub-standard products to the online retailer, including the footwear brand, Skechers . The vendor, however, told TOI, that Flipkart's charges are baseless and that it will take legal action against the e-tailer.

Late last year, Skechers had dragged Flipkart to court for selling counterfeit products under its brand but sources said that both the parties are now trying for an out-of-court settlement on this matter.


Sources said that Flipkart through a third-party forensic audit agency, found MRPL and a company employee were allegedly cheating the e-commerce company by importing sub-standard products at lower prices, while continuing to charge it the rate agreed upon for genuine goods. Flipkart had made all the payments in good faith when the shipments were received, believing them to be genuine, sources in the know said.

An e-mail sent to a Flipkart spokesperson did not elicit a response on this matter.

"Flipkart's charges are baseless and I would be taking legal action against them. Flipkart connected us to the suppliers and asked us to import these goods for a fixed margin. Their teams have worked on this and even visited the factory in China. How can they blame for the fraud in this case? I have all legal contracts on which Flipkart has indemnified us from any intellectual property rights (IPR) claims," a director of MRPL, said requesting his name to be withheld.

Over the past 12-18 months, third party merchants have been expressing their concerns publicly against major e-commerce companies accusing them of treating vendors in an unfair manner. Delayed payments, several marketplace fees, and special treatment to select sellers have been major causes of concern for third party sellers. E-commerce players, including Flipkart and Amazon, have refuted these allegations in the past saying they have one policy for every seller-- regardless of their scale of operation.