DK Business Network
In a dramatic regulatory sweep, the Bureau of Indian Standards (BIS) raided FirstCry’s Bengaluru warehouse on May 26. The surprise inspection targeted BrainBees Solutions Ltd., the parent company of FirstCry.com.
According to BIS, the raid uncovered hallmarking violations under Section 14(6) of the BIS Act, 2016—a charge that could carry significant legal penalties.
Officials confiscated goods worth nearly ₹90 lakh in a move that’s shaken one of India’s most recognized parenting brands. Following the raid, FirstCry’s shares dropped amid investor concerns. This incident adds to earlier regulatory issues, including a GST penalty of ₹1.74 crore in November 2024 related to tax mismatches.
The seized items reportedly failed to comply with mandatory hallmarking and certification standards. BIS has increased enforcement efforts in recent months to tighten oversight on brands operating in India’s growing e-commerce and consumer retail markets.
Industry observers see this as a strong signal to major online retailers about rising regulatory vigilance. With BIS cracking down on non-compliance, companies may need to urgently re-evaluate their internal compliance frameworks and supply chain audits.
This is not the first regulatory hurdle faced by FirstCry. In August 2023, the Income Tax Department launched an investigation into Founder Supam Maheshwari for alleged tax evasion worth $50 million. Notices were also sent to investors including ChrysCapital and the family office of Sunil Bharti Mittal.
Despite these challenges, FirstCry continues its operations and is seeking legal resolutions to these matters. The incident has sparked widespread industry attention and serves as a wake-up call for retail players balancing speed, scale, and strict regulatory adherence in India’s evolving consumer ecosystem.
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