Amazon moves Delhi HC over scope of ED probe, says agency seeking confidential information

Filing a petition in the Delhi High Court on Wednesday, Amazon has sought clarification on the scope of the Enforcement Directorate's investigation into alleged foreign exchange violations by the company in view of its 2019 deal to acquire a 49% stake in the Future Coupons Private Limited. Also, Amazon has alleged that ED has been asking for confidential information related to the company's business. 

Through the writ petition, it said that the ED has been expanding its scope of investigations by seeking privileged and confidential legal advice and thus such requests are not relevant to the agency's probe into the Future-Amazon deal. The e-commerce giant also noted that such information goes against the accepted judicial norms. Along with that, the company has also asked sought Delhi HC's advice on the summons being sent to the company executives who were not connected or aware of the Future-Amazon transactions. 

Notably, Amazon had received a number of summons by the Enforcement Directorate in connection with its deal with the Future Group in November.

Amazon-Future Group case

The dispute between Amazon and Future Group is centered around three commercial agreements signed between the two. The issue surfaced after the Kishore Biyani-led group in August 2020 agreed to sell its assets to Mukesh Ambani's Reliance Retail on a slump sale basis for Rs 24,500 crude. However, objecting to its sell-off plans, Amazon had accused Future Group of breaching its 2019 investment pact. 

The 2019 investment pact was the one in which Amazon made an investment of Rs 1,400 crore in the Future Coupons and further stated that it could sell its assets to restricted parties. However, Future Group sold its assets to Reliance, Amazon dragged Kishore Biyani and his companies, Future Coupons and Future Retail to arbitration in the Singapore International Arbitration Centre as well as in the Indian courts. 

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