The Enforcement Directorate (ED) has started a probe against e-commerce giant Amazon for alleged violation of the foreign exchange law and rules of the country.

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This 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 pertaining to certain multi-brand retail businesses and an observation made by the Delhi High Court in relation to Amazon.

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

The HC had said that 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.

Since then, Amazon has also filed a petition in the Delhi High Court seeking detention of Future Group founders, including CEO Kishore Biyani, and seizure of their assets as it sought to block the Future-Reliance deal.

In August 2019, Amazon had agreed to purchase 49 percent of one of Future’s unlisted firms, Future Coupons Ltd (which owns 7.3 percent equity in BSE-listed Future Retail Ltd through convertible warrants), with the right to buy into the flagship Future Retail after a period of three to 10 years.

Amazon had dragged Future Group to arbitration at Singapore International Arbitration Centre (SIAC), arguing that Future violated the contract by entering into the deal with rival Reliance.

-With PTI inputs

First Published:Jan 29, 2021 8:54 AM IST