Quick commerce company Zepto is under regulatory scrutiny as it prepares for its IPO, with multiple ongoing cases related to its operating practices. The Enforcement Directorate (ED) summoned cofounders Aadit Palicha and Kaivalya Vohra in April and May to investigate the company’s ownership structure under the Foreign Exchange Management Act, 1999 (FEMA), according to inc42.com.
The ED’s inquiry included summoning Kaivalya Vohra on April 17 and 22, and Aadit Palicha on April 20 and May 15. The investigation also touched on Zepto’s alleged involvement in promotional campaigns linked to Parimatch, an online betting platform banned in India. Zepto denied any direct role in Parimatch activities. Additionally, Zepto has faced penalties for dark pattern operations and product quality issues, including a ₹7 lakh fine imposed by the Consumer Protection Authority in December 2025.
These regulatory challenges come amid growing scrutiny of quick commerce companies in India, where consumer protection agencies have raised concerns about misleading pricing tactics and hygiene standards. Zepto’s issues with dark patterns such as “drip pricing” and “basket sneaking” highlight broader sector challenges. The company’s appeal against the penalty is pending before the National Consumer Disputes Redressal Commission, reflecting ongoing legal complexities in the sector.
The Enforcement Directorate’s summons and the Consumer Protection Authority’s penalty underscore the regulatory hurdles Zepto faces as it moves toward its IPO. The company’s cofounders appeared before the ED multiple times in April and May, with the legal proceedings continuing as of early June, according to inc42.com.