For allegedly violating FEMA, Amazon is reportedly under investigation by the ED for quietly attempting to acquire Future Retail in India ahead of Reliance Retail.
According to a report published by The Hindu, the Enforcement Directorate (ED) has initiated an investigation because it anticipates that Amazon has broken the rules of the Foreign Exchange Management Act.
In the Delhi High Court, Amazon challenged the Reliance Group’s acquisition of Future Retail last year.The HC then discovered that Amazon had tried to take over the company without the government’s permission.According to The Hindu, the Enforcement Directorate (ED) has launched an investigation because it anticipates that Amazon broke the rules of the Foreign Exchange Management Act.
The process’s violation will be determined by the investigation.In addition, Amazon India is “not aware of any new case by the ED against it,” according to the report.
In a related development, Future Group made a request to the National Company Law Tribunal (NCLT) on January 26 for assistance in completing the $3.4 billion asset sale to Reliance Retail.
Since the US-based e-commerce giant filed a petition in the Singapore International Arbitration Centre (SIAC) in October, the deal has been in doubt.Due to the fact that the giant owns a 49% stake in the promoter-entity of Future Retail known as Future Coupons, the petition was started.Through Future Coupons, it has also acquired a 3.58 percent stake in Future Retail.
Future Coupons was prohibited from selling its assets to 15 businesses by Amazon in the investors’ agreement it had with Future Coupons.Reliance Industries, Walmart, Alibaba, Softbank, Google, Naspers, eBay, Target, Paytm, Zomato, and Swiggy are among these businesses.
The transaction is currently in limbo until a court order determines how Future Retail will resume business.
