The Enforcement Directorate (ED) is probing Amazon.com and Future Retail’s (FRL) deal for violations under the Foreign Exchange Management Act, (FEMA) 1999.
Hearing Amazon’s suit against FRL, the Delhi High Court said on December 21 that the resolution approving proposed scheme of arrangement between Future Group and Reliance Retail was in accordance with Indian laws and could not be intervened with. It, however, added that Amazon was entitled to make representations and could not be injuncted from drawing regulators.
The ED action comes after the Delhi HC during the hearing observed that Amazon and FRL’s deal had been done in three agreements – which appeared to be in violation of FEMA, The Economic Times reported
Moneycontrol could not independently verify the report.