The deal between Amazon India and Future Group is once again in trouble. Sources said on Sunday that the Enforcement Directorate (ED) has sent notices to Amit Agarwal, country head of Amazon India. Kishore Biyani, head of Future Group, regarding this controversial deal. Sources say that the ED's investigation is related to the violation of Foreign Exchange Management Act (FEMA) rules in the disputed deal between Future Coupons Private Limited (FCPL) and Amazon India.
The ANI report quoted sources as saying that the officials of both the groups have been asked by the ED to appear in Delhi on December 6. This production is to be held at the agency's headquarters. Both the companies have also been ordered to bring all the documents related to the deal. The report further said that the ED will investigate whether Amazon has violated FEMA in buying a 49% stake in FCL by investing Rs 1431 crore in 2019.
According to sources, FPL, in which Amazon India has bought a 49% stake, has about a 10% stake in Future Retail Limited (FRL). FRL itself operates major retail chains like Big Bazaar, Food Bazaar and Easyday. Amazon's spokesperson has also confirmed receiving the ED notice. He said we have been sent a notice by the ED in connection with the Future Group. We have just got the summons. We are investigating the same and will respond to the same in due time.
There is a legal dispute between the two companies over the possible sale of Future Retail. Amazon says that Future Retail's agreement to sell Reliance Retail is in violation of its 2019 investment agreement with them.
