The Enforcement Directorate (ED) has summoned senior executives from Amazon India, including its country leader Amit Agarwal, and that of the Future group for questioning as part of an investigation into a currency breach related to the disputed deal between the two conglomerates, official sources said on Sunday. . The leaders were summoned with documents for the coming week under the provisions of the Foreign Exchange Management Act (FEMA), they said.
Amazon India chief Agarwal, other senior company officials and those at the Future Group have been called in, the sources said.
The investigation is being conducted under various sections of FEMA after the federal agency received a communication from the Commerce Department earlier this year requesting “necessary action” against e-commerce players like Amazon and Flipkart regarding certain multi-brand retail companies and a submission made by the Delhi High Court regarding Amazon.
The HC had said that the US-based company’s attempt to control Future Retail through an amalgamation of agreements with an unlisted unit of the Indian company would be viewed as a violation of FEMA rules and regulations. foreign direct investment (FDI).
Executives have been invited to join so that the investigation can move forward. The agency has gathered details from documents submitted by the companies earlier and other sources in recent months, agency sources said.
An Amazon spokesperson said they were reviewing the emergency summons.
“We are in the process of receiving invitations issued by the ED in connection with the Future Group. As we have just received the convocation, we are examining it and will respond to it within the allotted time,” the spokesperson said in a statement. communicated.
The Future Group led by Kishore Biyani did not answer questions about the development.
Amazon and Future Group have clashed in court after the Kishore Biyani-led group agreed in August last year to sell its assets to billionaire Reliance Retail from billionaire Mukesh Ambani on a discount basis for Rs 24,500. crore.
Amazon opposes sales plans, accusing Future Group of violating its 2019 investment pact. Future Coupons was founded in 2008 and is dedicated to the marketing and distribution of gift cards, loyalty cards and other corporate client rewards programs. The US-based company had approached the Singapore International Arbitration Center (SIAC) as well as Indian courts.
Earlier this month, a promoter entity of Future Retail Ltd (FRL) was asked by the ED to provide documents relating to the 2019 deal with Amazon. FRL noted that he had not received any instructions to provide a document.
FRL’s independent directors have contacted the Competition Commission of India (ICC), urging it to revoke the approval it gave to the Amazon-FCPL deal in 2019, alleging that the e-commerce major had made false statements in front of her.
Amazon also wrote to the independent directors of FRL, alleging “significant financial irregularities”, and said this warranted a “careful and independent examination” of the relevant facts and related party transactions between FRL and other entities of the FRL. Future Group.
She also contacted the ICC, asking it “to act in favor of the enforceable injunctions against the FRL, the FCPL and the Biyanis, under the EA (emergency arbitrator) order and the order on the vacancy request and immediately recall the letters of observation. “.