India, Oct. 13 -- The Enforcement Directorate (ED) has reportedly offered Flipkart the option to compound an ongoing Foreign Exchange Management Act (FEMA) violation case, allowing the ecommerce giant to resolve the matter without facing prolonged legal proceedings.

The ED last week extended this offer under FEMA's compounding rules, giving the Walmart-owned company an opportunity to admit its mistake, pay a penalty, and close the case, news agency PTI reported citing sources.

Inc42 has reached out to Flipkart for comments on the development. The story will be updated based on the responses.

Under the compounding provision of FEMA, the ED provides an option to firms which have violated foreign exchange rules to acknowledge the breach a...