The Enforcement Directorate (ED) summons Amazon, Future Group officials related to 2019 case

29 November 2021, Mumbai:

The Enforcement Directorate is examining whether the deal violated India's law on foreign exchange when it invested Rs 1,431 crore to purchase a 49 percent stake in Future Coupons Pvt Ltd (FCPL) in 2019 and if it complied with regulations.

The Enforcement Directorate (ED) has summoned Amazon India head, Amit Agarwal, next week over alleged irregularities in a deal with Future Group, CNN-News18 reported on Sunday.

“We are in receipt of summons issued by the ED in connection with the Future Group. As we have just received the summons, we are examining it and will respond within the given time frame,” Amazon said in a statement.

According to the sources, the federal agency has also summoned Future Group officials for the verification of documents and the evidence it has collected so far. The company did not respond to the queries till press time.

The ED is examining if Amazon violated India's law on foreign exchange, or the Foreign Exchange Management Act (FEMA), when it invested Rs 1,431 crore to purchase a 49 percent stake in Future Coupons Pvt Ltd (FCPL) in 2019 and if it complied with regulations.

FCPL owns a 9.82 percent stake in Future Retail Ltd (FRL). The deal allowed Amazon to not only indirectly hold a 4.81 percent stake in Future Retail, but also gave it effective veto power over the listed retail company.

Amazon has been claiming controlling rights over Future Retail at various judicial forums and objecting to Kishore Biyani-led Future Group's the sell-off plans, accusing it of breaching the investment pact.

MoneyControl.com (The news article has not been edited by DFU Publications staff)

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