New Delhi: The Delhi High Court on Thursday said it will hear in January Amazon’s plea challenging the jurisdiction of the Enforcement Directorate to investigate matters outside its purview under the Foreign Exchange Management Act (FEMA). Is. The petition was listed before Justice Rekha Palli, who did not hear the court, and the matter is now listed for hearing on January 5.
The petitioners Amazon Wholesale (India) Pvt Ltd and Amazon Seller Services Pvt Ltd have challenged the jurisdiction of the Enforcement Directorate (ED) and its officers to investigate Amazon Wholesale (India) Pvt Ltd in matters which are in violation of the agency’s authority and remittances. are out of scope. Last month, under FEMA, Amazon said it had received summons by the ED in connection with its deal with Future Group.
The petition states that the two companies – Amazon Wholesale (India) Pvt Ltd and Amazon Seller Services Pvt Ltd – are Indian resident entities and are challenging the investigation as it pertains to transactions that do not have any foreign exchange element. It said the ED had issued a direction on February 19 this year and is conducting a “phishing and rowing” investigation against Amazon Wholesale and subjecting the petitioners to proceedings without any legal basis or jurisdiction. This is causing unnecessary harassment despite their full cooperation, the plea said.
Various summons and emails have been issued to the employees of Amazon Seller Services for a transaction which is completely unrelated to them, and seeking legal advice and privileged legal opinion from them as may be prescribed from time to time by the Indian subsidiaries of Amazon.com. The petition has sought a direction to the ED of February 2021 to immediately withdraw or quash all summons or proceedings initiated by the agency. It also sought the court’s direction to the probe agency not to conduct “fishing and rowing” investigations on matters falling under legal prerogative and seeking information outside the purview of FEMA.
Amazon and Future Group are battling it out in courts after Kishor Biyani-led conglomerate in August last year agreed to sell their assets on a sale basis to billionaire Mukesh Ambani’s Reliance Retail for Rs 24,500 crore. Amazon has objected to the sell-off plan, accusing Future Group of violating its 2019 investment agreement. Future Coupons was established in 2008 and is engaged in the business of marketing and distribution of gift cards, loyalty cards and other reward programs to corporate clients.
Amazon had approached the Singapore International Arbitration Center (SIAC) as well as Indian courts. Last week, the Competition Commission of India (CCI) suspended its more than two-year-old approval for Amazon’s deal to acquire a stake in Future Coupons Pvt Ltd, and for some Rs 202 crore on the e-commerce major. Also fined. Violation.
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