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Trade group accuses Amazon of violating FDI policy, company denies charges

Traders' body CAIT on Wednesday accused e-commerce major Amazon of violating FDI policy and Foreign Exchange Management Act (FEMA) norms, a charge which the multinational company denied

Topics
CAIT | Amazon | FDI policy

Press Trust of India  |  New Delhi 

dollar, fpi, investment, FDI

Traders' body on Wednesday accused e-commerce major of violating and Foreign Exchange Management Act (FEMA) norms, a charge which the multinational company denied.

The traders' body in a letter to Commerce Minister Piyush Goyal alleged that the online retailer has not sought the government's approval for conducting multi-brand retail activities in India and demanded action and imposition of maximum penalty against the company.

"Documents available in the public domain show that has made an investment of about Rs 35,000 crore in India, a make-believe e-commerce marketplace platform, but in reality (it is) indirectly carrying multi-brand retail business," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal told reporters.

Denying the allegations, an Amazon spokesperson said: "As a responsible investor and a long-term player in India, Amazon complies with FDI laws and seeks regulatory approvals including from the Competition Commission of India. Our investment in Future and all investments in India are in compliance with applicable regulations."

alleged that Amazon has investment "of about Rs 4,200 crore in More Retail Limited (a multi-brand retail company); on the face of it looks like it is controlled by an Alternative Investment Fund (AIF) of Samara Capital, and has investment of about Rs 1,430 crore in Future Coupons Private Limited, a controlling investment in Future Retail Limited (a multi-brand retail company)".

The traders' body alleged that all these investments were in violation of FEMA Rules and Regulations, and urged the government to take immediate action.

in its letter to Goyal demanded that "ED (Enforcement Directorate) must take strict action against Amazon for its brazen violations including imposition of maximum penalties against them".

Khandelwal said he has called a meeting of trade leaders from across the country on Friday via video conferencing on the issue.

Traders may be compelled to take to the streets to agitate if no action is taken against Amazon immediately and CAIT will not shy away from approaching the courts if needed on the issue, he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, November 04 2020. 19:45 IST
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