ED books Amazon to probe alleged FEMA, FDI violations

The Enforcement Directorate (ED) has registered a case against US e-commerce giant Amazon to investigate alleged violation of India’s foreign exchange and foreign direct investment laws, people familiar with the development, requesting anonymity, said on Thursday.

The investigation, launched under various sections of the Foreign Exchange Management Act (FEMA) is based on a recent Delhi High Court observation that the US-based Amazon’s attempt to control Future Retail through a conflation of agreements it has with an unlisted unit of a Indian company without government’s approval will be considered a violation of FDI (foreign direct investment) rules and FEMA, they said.

On Amazon’ plea to challenge the acquisition of Kishore Biyani-led Future Retail by Mukesh Ambani’s Reliance Industries Ltd for ₹24,713 crore in August 2020, the high court had said in its judgment last month that Amazon appeared to have indirectly obtained control of Big Bazaar without the government’s approval.