India's Enforcement Directorate, the agency that investigates offenses related to money laundering, summoned officials of Amazon.com and its warring partner Future Coupons Pvt Ltd. (FCPL) in a case related to alleged violation of foreign investment rules, The Economic Times newspaper reported.
According to the newspaper, the Indian government agency is investigating whether Amazon was in breach of India’s foreign exchange laws when it invested 14.3 billion rupees ($191 million) to purchase a 49% stake in FCPL in 2019. FCPL owns about 10% of Future Retail Ltd., the flagship entity that runs the Big Bazaar, Food Bazaar and Easyday chains.
Amazon told the newspaper that “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.”
According to Reuters, at least two senior Future Group executives have been summoned to appear before the Enforcement Directorate in the week of Dec 6, and at least two Amazon India executives, including its legal head, have also been summoned.