NEW DELHI, March 27 (Reuters) - India's state-run

product certification agency said it raided the Delhi warehouses

of e-commerce giants Amazon ( AMZN ) and Flipkart this month,

seizing items that did not meet quality control standards, as it

increased its scrutiny of the two firms.

Last week, the Bureau of Indian Standards conducted similar

searches at the companies' warehouses in the southern state of

Tamil Nadu, saying they stored, sold, and exhibited items that

did not have a required standards label.

Amazon ( AMZN ) and Walmart ( WMT )-owned Flipkart have said they

comply with local laws. They did not immediately respond to

Reuters' requests for comment on the Delhi raids.

Both are the dominant players in India's e-commerce market

which, according to estimates by consultancy firm Bain, was

worth between $57 billion and $60 billion in 2023, and could top

$160 billion in value by 2028.

The agency said on Thursday it has seized items including

geysers and food mixers worth about 7 million rupees ($81,561)

in warehouses operated by an Amazon ( AMZN ) subsidiary in Delhi.

The seized products either lacked the standard quality

control mark, or carried fake labels, the agency said.

It seized almost $7,000 worth of sports shoes from a

Flipkart unit, which were ready for dispatch but did not carry

necessary product certification marks.

The warehouse seizures are the latest troubles for Amazon ( AMZN )

and Flipkart in India. An antitrust investigation last September

found the companies had violated local competition laws by

giving preference to selected sellers on their shopping

websites.

A 2021 Reuters investigation, based on internal Amazon ( AMZN )

documents, showed the company had for years given preferential

treatment to small groups of sellers, and used them to bypass

Indian laws. Amazon ( AMZN ) denied any wrongdoing.

($1 = 85.8250 Indian rupees)