ED summons Amazon India head, Future Group promoters for FEMA violations

28-11-2021 Sun 17:27 | Business | IANS

New Delhi, Nov 28: The Enforcement Directorate (ED) has issued summons to Amazon India's management and Future Group promoter for questioning in a Foreign Exchange Management Act case.

Amazon India's top management including its head Amit Agarwal was summoned by ED for next week, said source. The official said that they have been asked to join probe on December 6.

The ED is probing alleged irregularities in the Amazon and Future Retail promoter entity Future Coupons Pvt Ltd (FCPL) deal wherein Amazon purchased stakes in FCPL by investing around Rs 1,400 crore in 2019.

The agency has asked both the companies to come with all sets of documents about the deal.

The financial investigating agency is probing alleged FEMA violations by Amazon when it bought stakes in FCPL in 2019.

FCPL owns 10 per cent stake in Future Retail, the promoter entity that runs Big Bazaar, Food Bazaar and Easyday retail stores.

The agency is also probing whether Amazon has taken over controlling rights over Future Retail with its purchase of stake in FCPL in 2019.

It is alleged that in March this year, Future Group promoter firm FCPL had complained to the Competition Commission of India that Amazon had allegedly concealed information and misrepresented facts while seeking the competition watchdog's approval for its Rs 1,431 crore investment to purchase a 49 per cent stake in FCPL in 2019.

(The content of this article is sourced from a news agency and has not been edited by the ap7am team.)