Amazon faces ED probe for alleged violation of the foreign exchange laws and rules of the country- Technology News, Firstpost
TechSamvadJan 29, 2021 17:33:55 IST
A probe has been launched against e-commerce and tech giant Amazon by the ED (Enforcement Directorate) for being accused of an alleged violation of the foreign exchange laws and rules of the country. This comes only a week after SEBI had given the nod of approval to Reliance’s takeover of Kishore Biyani led Future Retail. The investigation is being carried out under various provisions of the Foreign Exchange Management Act (FEMA) after the central probe agency recently received a notification from the Ministry of Commerce.
The probe seeks “necessary action” against e-commerce players such as Amazon and Flipkart relating to certain multi-brand retail companies and an observation made in relation to Amazon by the Delhi High Court.
(Also Read: Reliance Retail, Future Group’s Rs 24,000 crore deal cleared by market regulator SEBI)
The HC said that the attempt made by the US-based company to dominate Future Retail through a combination of agreements it has with the Indian company’s unlisted unit would be regarded as a breach of the laws of FEMA and foreign direct investment (FDI).
This is only a day after the traders’ body CAIT (Confederation of All India Traders) had written to the Commerce and Industry Minister accusing Amazon and various other e-commerce businesses for ‘daylight robbery’.
With inputs from PTI.
