ED summons Amazon and Future Group officials to investigate FEMA breach

(PTI) New delhi date. 3

The Enforcement Directorate (ED) has issued summons to senior officials of Amazon India and Future Group in connection with the probe into violations of the Foreign Exchange Management Act (FEMA). Among them is Amit Agarwal, Central President of Amazon India.

According to official sources, the officials have been asked to appear in connection with the FEMA probe into the disputed deal between the two groups. According to sources, officials of these companies have been asked to appear next week with the documents.

According to sources, summons have been issued to Amazon India President Agarwal and other senior executives along with Future Group officials.

The Commerce Ministry has asked ED to take necessary action against multi-brand retail businesses against e-commerce companies like Amazon and Flipkart. The Delhi High Court also slammed Amazon. The ED then launched an investigation under various provisions of FEMA.

The Delhi High Court said that the American company Amazon had tried to gain control of Future Retail through some agreements with Future Group's unlisted unit. In which FEMA and Foreign Direct Investment (FDI) rules are considered to be violated.

The agency investigating the case, ED, told sources that officials from both the companies have been called in for questioning to further the investigation.

The Future Group, led by Kishore Biyani, announced in August last year that it would sell its group assets to billionaire Mukesh Ambani's Reliance Retail for Rs 500 crore. Amazon had challenged the agreement between Future and Reliance in court.