The ED has summoned Amazon India's CEO for alleged future group deal irregularities.
According to the sources, the federal agency has also called Future Group officials for the purpose of verifying papers and evidence gathered thus far.
| The ED has summoned Amazon India's CEO for alleged future group deal irregularities., UpcomingNews |
According to CNN-News18, the Enforcement Directorate (ED) has questioned Amazon India CEO Amit Agarwal next week for suspected violations in a contract with Future Group.
"We have received a summons from the ED in relation to the Future Group." "As we have only recently received the summons, we are reviewing it and will answer within the timeframe provided," Amazon stated in a statement.
According to the sources, the federal agency has also called Future Group officials for the purpose of verifying papers and evidence gathered thus far. Until press time, the firm had not responded to the questions.
When Amazon paid Rs 1,431 crore for a 49 percent share in Future Coupons Pvt Ltd (FCPL) in 2019, the ED is investigating if it broke India's foreign exchange legislation, or the Foreign Exchange Management Act (FEMA), and whether it followed with rules.
Future Retail Ltd is owned by FCPL, which owns 9.82 percent of the company (FRL). The agreement granted Amazon not just an indirect 4.81 percent share in Future Retail, but also effective veto power over the publicly traded retailer. Amazon has been claiming ownership of Future Retail in several court venues and opposing to Kishore Biyani's Future Group's attempts to sell up the company, accusing it of breaking the investment deal.
Amazon and Future Group have been at odds since Future decided to sell its assets to Mukesh Ambani's Reliance Group for Rs 24,500 crore on a slump basis last year.
The Delhi High Court had previously stated that Amazon looked to have taken indirect control of Future Retail without the government's assent.
According to the Confederation of All India Traders (CAIT), the Supreme Court of India (HCI) instructed the Competition Commission of India (CCI) to determine within two weeks on withdrawing its permission of the Amazon-Future Coupons transaction.
This occurred shortly after the offline merchants' organization CAIT launched a public interest lawsuit against CCI, alleging that the competition regulator had issued Amazon a show-cause notice in June but had yet to make a decision. On January 4, 2022, CCI will meet with Amazon and Future Coupons Pvt Ltd (FCPL), according to previous reports.
Independent directors of Future Retail Ltd have also written twice to CCI in the past few weeks seeking revocation of the nod given to the US giant’s 2019 investments into Future Coupons, a promoter group entity of Future Retail.
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