Enforcement Directorate has ordered Future Group to submit documents related to its 2019 deal with Amazon as part of an investigation into possible breach of foreign investment laws, according to sources and a notice seen by Reuters.

The demand indicates heightened scrutiny of a deal which is at the heart of legal battles between Amazon and Future after the Indian company decided to sell its retail assets to rival Reliance Industries for $3.4 billion in 2020.

That transaction has been put on hold by an arbitrator and Indian courts after Amazon argued Future had violated its contracts with the US company by entering into the sale. Future denies that, and says Amazon is illegally exerting control over the Indian firm's business decisions.

In a confidential notice dated October 28, the Enforcement Directorate agency asked a Future unit to submit all correspondence including emails between Amazon and the Indian group in respect of the investment the US firm made in Future two years ago. Reuters has reviewed a copy of the notice.

Two sources with direct knowledge of the matter said the notice was part of an ongoing investigation by the Indian agency to establish whether there were any violations of foreign investment law when Amazon made the $200 million investment in Future's gift voucher unit, Future Coupons.

The notice has not previously been reported and was sent to Future Coupons, which was given 15 days to respond.

The Enforcement Directorate, which typically does not make details of its investigations public, did not respond to a request for comment. Amazon and Future also did not respond.

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First Published:Nov 9, 2021 12:03 AM IST