Amazon moves Delhi High Court
The e-commerce giant has alleged that the Enforcement Directorate was conducting a much wider probe into its Future Group
Amazon moves Delhi High Court The e-commerce giant has alleged that the Enforcement Directorate was conducting a much wider probe into its Future Group deal The e-commerce giant Amazon Wholesale India Private Limited (Amazon) has moved the Delhi High Court seeking quashing of the investigation by the Enforcement Directorate (ED) into its 2019 deal with the Future Group. In its...
Amazon moves Delhi High Court
The e-commerce giant has alleged that the Enforcement Directorate was conducting a much wider probe into its Future Group deal
The e-commerce giant Amazon Wholesale India Private Limited (Amazon) has moved the Delhi High Court seeking quashing of the investigation by the Enforcement Directorate (ED) into its 2019 deal with the Future Group.
In its petition, Amazon has termed the investigation a "fishing and roving" inquiry. It added that the ED had sought details of privileged legal advice and opinions from Amazon and other information not connected with the Future Group deal.
The petition highlighted a 2019 notice from the ED, seeking details of its investment in Future Group. The notice, according to Amazon, demanded copies of agreements, bank account details and other internal communications. Amazon alleged that it showed that the ED was conducting a much wider probe, as it had also sought details of big vendors on Amazon's e-commerce website.
It further added that while Amazon was ready and willing to cooperate with the investigation, the privileged and legal opinions sought by the ED were not only beyond the scope of the investigation, but also contrary to the law.
"The opinions and legal advice/strategy obtained by Indian entities of Amazon are covered by attorney-client privilege as well as litigation privilege. Accordingly, the ED cannot compel the petitioner to submit privileged legal advice and legal opinions given by the law firms/advocates and legal counsel of Indian Amazon entities," the petition said.
The ED has been probing Amazon's nearly $200 million investment in the Future Group for alleged violations of the foreign investment laws.
The Amazon-Future Group deal has been embroiled in several legal battles, as a result of which the sale of Future's assets to Mukesh Ambani owned Reliance Industries Limited, was stalled.
Recently, the Competition Commission of India (CCI) had suspended its two-year-old approval for the deal. The CCI had also imposed a fine of Rs.202 crores on Amazon for hiding facts and making false statements in 2019 while seeking regulatory approvals.