In a FEMA violation investigation, the ED summons Amazon India’s CEO and Future Group officials

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In its probe into accusations by the latter that Amazon India and Future Retail promoter entity Future Coupons Pvt. Ltd (FCPL) violated norms and misrepresented information in its 2019 FCPL agreement. Amazon India and Future Retail promoter company Future Coupons Pvt. Ltd have been issued the summonses by the ED (FCPL).

The Enforcement Directorate (ED) is summoning Amazon and Future Coupons Pvt. Ltd (FCPL) senior management to its New Delhi headquarters next week. The ED issued summonses to Amazon’s country head Amit Agarwal and Future Group promoters, directing officials to double-check papers already acquired.

When Amazon bought a 49 percent share in Future Coupons in 2019, the agency looked into whether it violated the Foreign Exchange Management Act (FEMA). Future Retail, the promoter company that runs Big Bazaar, Food Bazaar, and Easyday retail outlets, owns a 10% share in FCPL.

“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 spoke to the media sources.

According to the source, the ED is also looking into the operating rights granted to Amazon over Future Retail when it bought a stake in FCPL in 2019.

By purchasing a 49 percent share in FCPL in 2019, the worldwide retail giant claimed control over Future Retail.

The Delhi High Court, in ruling on an Amazon plea, stated that the business appears to have assumed indirect control over Future Retail without obtaining government approval.

According to the ET report, Amazon is expected to cooperate with the ED inquiry, and both businesses have been asked to give papers related to the acquisition as well as personal financial information.

Future Group promoter business FCPL filed a complaint with the CCI in March 2021, alleging that Amazon had withheld information and misrepresented facts while seeking permission from the competition watchdog for its Rs 1,431 crore investment to purchase a 49 percent share in FCPL in 2019.

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