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Sunday, February 28, 2021

Future Retail deal: ED probing Amazon over FEMA violations

It comes after the ED’s receipt of a reference from the Commerce Ministry seeking “necessary action” against e-commerce players like Amazon and Flipkart on suspicion of alleged FDI violations.

By: ENS Economic Bureau | New Delhi |
Updated: January 29, 2021 12:17:17 am
A spokesperson said Amazon is “not aware of any new case by the ED against Amazon India.”

The Enforcement Directorate (ED) has registered a case of alleged foreign exchange violations against Amazon over its deal with Future Retail and started a probe under the Foreign Exchange Management Act (FEMA).

It comes after the ED’s receipt of a reference from the Commerce Ministry seeking “necessary action” against e-commerce players like Amazon and Flipkart on suspicion of alleged FDI violations. An observation in this regard had also been made recently by the Delhi High Court in the case of Amazon.

The HC had said the attempt by Amazon to control Future Retail via a conflation of agreements it has with an unlisted unit of the Indian company will be considered as violative of FEMA and foreign direct investment (FDI) rules. In response to the development, an Amazon spokesperson said, “We are not aware of any new case by the ED against Amazon India.”

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