ED summons top officials of Amazon and Future Group, a case of FEMA violation

New Delhi, The Enforcement Directorate (ED) has summoned senior executives of Amazon India and Future Group, including Amazon India’s country head Amit Agarwal, in connection with its probe into the Foreign Exchange Management Act (FEMA) violations. These officials have been asked to appear in connection with the FEMA probe into the disputed deal between the two groups, official sources said on Sunday.

These company officials have been asked to appear with the documents in the coming week, sources said. According to sources, Amazon India chief Agarwal and other senior officials as well as officials of Future Group have also been summoned by the Enforcement Directorate. The ED has been asked by the ED to take “necessary steps” for multi-brand retail trading against major e-commerce companies like Amazon and Flipkart. Apart from this, the Delhi High Court also made a strong comment about Amazon. After that ED started investigation under various sections of FEMA.

The High Court had said that US company Amazon attempted to gain control of Future Retail through certain agreements with an unlisted entity of Future Group, which would be considered in violation of FEMA and Foreign Direct Investment (FDI) norms. Sources in the ED, which is probing the matter, said that the officials of both these companies have been called to take the investigation forward.

An Amazon spokesperson confirmed the receipt of the summons, saying that the company is reviewing it and will take necessary steps within the stipulated time. However, Future Group did not comment on this. Both the companies are embroiled in a legal battle over a possible sale of Future Retail. Amazon says its agreement to sell Future Retail to Reliance Retail violates its 2019 investment agreement with Reliance Retail.