Amazon under ED scanner for violation of FEMA norms

New Delhi, January 28

The Enforcement Directorate (ED) has initiated a probe against e-commerce giant Amazon for alleged violation of the foreign exchange law and rules of the country, official sources said on Thursday.

The probe is being conducted under various sections of the Foreign Exchange Management Act (FEMA) after the central probe agency recently received a communication from the Commerce Ministry seeking “necessary action” against e-commerce players like Amazon and Flipkart pertaining to certain multi-brand retail businesses and an observation made by the Delhi High Court in relation to Amazon.

Future Retail-Reliance deal

• The probe is being conducted under various sections of the FEMA after the central probe agency recently received a communication from the Commerce Ministry seeking “necessary action” against e-commerce players pertaining to certain multi-brand retail businesses
• The Delhi HC had recently said the attempt made by the US-based firm to control Future Retail through a conflation of agreements it has with an unlisted unit of the Indian company will be considered as violative of the FEMA and FDI rules

The HC had said the attempt made by the US-based firm to control Future Retail through a conflation of agreements it has with an unlisted unit of the Indian company will be considered as violative of the FEMA and foreign direct investment (FDI) rules.

When contacted, an Amazon spokesperson said it was “not aware of any new case by the ED against Amazon India”.

Sources said the agency is looking to “investigate into the entire issue and will seek details from Amazon and other stakeholders”.

In the first instance under the ED scanner is a recent communication sent to it by the Department for Promotion of Industry and Internal Trade (DPIIT) that functions under the Commerce Ministry. — PTI