Amazon has moved Delhi High Court against Enforcement Directorate to cancel its investigation into the 2019 deal with Future Group for alleged violations of foreign investment rules.
Amazon has called the investigation a fishing and roving inquiry, saying the ED had sought privileged legal advice and opinions from Amazon and other information not connected to the Future Group deal, NDTV reported citing sources. It said the ED doesn't have "requisite jurisdiction... to investigate issues relating to people joining or leaving the legal team of Indian Amazon entities in India..."
Amazon has also sought the Delhi High Court's advice on the reasons behind ED expanding its scope and powers in the probe and summons to its executives who aren't connected to or aren't aware of the Future-Amazon transactions to testify in person.
Amazon accused the investigative agency for overreach and asked the court to halt the probe and stop it from issuing summons.
Amazon has also sought the Delhi High Court's advice on the reasons behind ED expanding its scope and powers in the probe and summons to its executives who aren't connected to or aren't aware of the Future-Amazon transactions to testify in person.
The ED has for months been probing Amazon's Rs 1,430 crore investment in Future Group for suspected violations of foreign investment laws. The investment is at the centre of protracted legal battles, as Amazon has used the terms of that deal - and cited contract breaches by Future - to stall Future Group from selling its assets to Mukesh Ambani's Reliance Retail for Rs 24,500 crore, according to NDTV report.
Last week, Competition Commission of India suspended Amazon's 2019 deal with Future Group saying "it is necessary to examine the combination afresh," adding its approval from 2019 "shall remain in abeyance" until then.
The competition watchdog ruled that the US e-commerce group had suppressed information while seeking regulatory approval on an investment into Indian retailer Future Group two years ago, according to news agency Reuters.
Amazon had argued that terms agreed in its 2019 deal to pay $200 million for a 49 per cent stake in Future's gift voucher unit prevent parent, Future Group, from selling its Future Retail Ltd business to certain rivals, including Reliance.
