Future Retail deal: ED probing Amazon over FEMA violations

The Enforcement Directorate (ED) has registered a case of alleged international alternate violations in opposition to Amazon over its cope with Future Retail and began a probe beneath the Foreign Exchange Management Act (FEMA).
It comes after the ED’s receipt of a reference from the Commerce Ministry looking for “necessary action” in opposition to e-commerce gamers like Amazon and Flipkart on suspicion of alleged FDI violations. An remark on this regard had additionally been made just lately by the Delhi High Court within the case of Amazon.

The HC had stated the try by Amazon to manage Future Retail by way of a conflation of agreements it has with an unlisted unit of the Indian firm might be thought-about as violative of FEMA and international direct funding (FDI) guidelines. In response to the event, an Amazon spokesperson stated, “We are not aware of any new case by the ED against Amazon India.”