Amazon, Future Group officials get ED summons over $200 million deal

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The Enforcement Directorate has summoned officials of Amazon.com Inc and its estranged business partner Future Group in a case related to alleged violation of foreign direct investment (FDI) rules by the two companies.</p>
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"As we have just received the summons, we are examining it and will respond within the given time frame," an Amazon spokesperson told Reuters news agency.</p>
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The Enforcement Directorate is investigating whether there were any violations of foreign investment laws when Amazon made a $200 million (Rs 1,430 crore) investment in Future's gift voucher unit– Future Coupons, in 2019.</p>
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The deal has also triggered a court battle between Amazon and Future after the Indian company decided to sell its retail assets to Mukesh Ambani-led Reliance Industries for $3.4 billion in 2020.</p>
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The Future deal with Reliance has been held up as Amazon has moved court, alleging Future had violated its contracts with the U.S. company by entering into the sale. However, Future has denied any wrongdoing and claims Amazon is illegally interfering in its business decisions.</p>
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Jeff Bezos-founded Amazon and Reliance are engaged in a fierce fight for a bigger pie of India’s mammoth retail market that’s still not open to foreign companies.</p>