Lagatar24 Desk
New Delhi, Dec.23: Amazon is suing India’s financial crime fighting agency to stop an inquiry into one of its 2019 partnerships, according to a court file seen by Reuters.
Amazon’s $200 million (approximately Rs. 1,510 crore) investment in India’s Future Group has been under investigation by India’s Enforcement Directorate (ED) for months for possible violations of foreign investment laws.
The investment has been the subject of protracted court fights, as Amazon has used the terms of the deal – and highlighted contract violations by Future – to halt the sale of Future’s retail operations to a competitor for $3.4 billion (approximately Rs. 25,640 crore).
Amazon called the investigation a “fishing and roving” investigation in an 816-page file reviewed by Reuters, claiming the ED sought confidential legal advice and views from Amazon as well as other information unrelated to the Future Group purchase.
The ED had summoned several Amazon executives, including its India CEO, in recent weeks, and the inquiry had resulted in “unnecessary harassment,” the e-commerce giant said in a plea to the Delhi High Court on December 21.
“The ED’s requests for disclosure of legally privileged papers and litigation privilege material are in violation of the principles” given out in the Indian constitution, according to Amazon’s filing, which is not public.
The disagreement revolves around three commercial agreements signed by Future and Amazon businesses, which a Singapore arbitration panel, which is also hearing the case, has stated must be read together when evaluating the purchase.
Future claims that combining the commercial agreements would make the deal illegal under Indian law.
A notification from the ED dated February 19 was included in Amazon’s court filing, asking for data about its investment in Future, including copies of agreements, bank account information, and other internal communication.
The notification came after a Reuters investigation in February discovered that Amazon helped a small number of Indian retailers succeed by offering them cheaper fees and allowing them to circumvent foreign investment regulations.
Amazon stated at the time that it was confident in its compliance with legislation and that it “does not provide any vendor on its marketplace preferential treatment.”
