By Kavita Mistry 
The Bengaluru-based Salarpuria Sattva Group appears to have emerged as a significant participant in India’s e-commerce ecosystem.
If you are unaware, Salarpuria Sattva Group, primarily known for its presence in real estate, has achieved this through two large seller entities, Darshita Aashiyana and Dawntech Electronics.
Attracting Attention From Regulatory Authorities
These two companies reported a combined revenue of over Rs 23,800 crore in FY24.
Each of these posted net profits of Rs 72 crore, resulting in margins of less than one percent.
Similarly, Cocoblu Retail – another prominent seller which is backed by RattanIndia Enterprises, reported Rs 5,500 crore in revenue and a profit of Rs 63 crore.
When it comes to these sellers, they are part of a broader group of ten entities on leading online marketplaces, such as Amazon and Flipkart.
They have together recorded approximately Rs 72,000 crore in revenue in FY24, as per the filings reviewed by Moneycontrol.
Further, informing that the combined net profit for these firms stood at around Rs 230 crore.
It appears that the financial performance of these companies, characterised by high topline and narrow profit margins, has attracted attention from regulatory authorities.
Considering the same, the Competition Commission of India (CCI) and the Enforcement Directorate (ED) are examining various aspects of these entities’ operations.
Preferential Treatment On Online Platform
Earlier in 2022, the CCI initiated inquiries focusing on whether certain sellers may have received preferential treatment on online platforms, potentially affecting competition.
Under ED’s investigation, they looked into the structure and ownership of these entities during 2024 whether they follow India’s FDI rules and relevant provisions under the Prevention of Money Laundering Act (PMLA).
The e-commerce platforms that receive foreign direct investment are not permitted to operate inventory-based models or maintain direct or indirect control over sellers as per the current Indian policy.
It appears that the regulations are specifically designed to ensure platform neutrality and safeguard competition.
Presently, authorities are seeking to understand the commercial structure and functional independence of the sellers operating at scale on these platforms.
For doing so, the Competition Commission of India (CCI) and the Enforcement Directorate (ED) are examining various aspects of these entities’ operations.
The CCI initiated inquiries in 2022, focusing on whether certain sellers may have received preferential treatment on online platforms, potentially affecting competition.
The ED’s investigations which was launched in 2024, are looking into the structure and ownership of these entities and whether they follow India’s FDI rules and relevant provisions under the Prevention of Money Laundering Act (PMLA).
Under current Indian policy, e-commerce platforms that receive foreign direct investment are not permitted to operate inventory-based models or maintain direct or indirect control over sellers.
When it comes to these regulations, they are designed to ensure platform neutrality and safeguard competition.
Authorities are seeking to understand the commercial structure and functional independence of the sellers operating at scale on these platforms.
The Hyderabad-based Premium Lifestyle and Fashion India reported Rs 11,885 crore in revenue and Rs 25 crore in profit for FY24, as per the available data in the regulatory filings.
So far, the company operates 150 retail stores but it could not be independently confirmed.