Amazon's spending 20% of its revenue on lawyers is questionable, should be investigated: CAIT
The misuse of legal funds by Amazon thrashes all principles of the economic viability of any company, says CAIT.
September 21, 2021 / 06:53 PM IST
The Confederation of All India Traders (CAIT) has reiterated its demand for a CBI probe into the practices of US-based e-commerce firm Amazon after a report claimed that the company paid $1.2 billion in legal expenses in the last two years to maintain its presence and relevance in India.
This report comes a day after Morning Context wrote that Amazon's India lawyers bribed officials and that the company had initiated an investigation into the conduct of its legal representatives in India.
The misuse of legal funds by Amazon thrashes all principles of the economic viability of any company, said CAIT National President B C Bhartia and Secretary General Praveen Khandelwal.
"CBI investigation has now become necessary as it is alleged that several govt officials have been given bribe," Khandelwal tweeted in response to a tweet by Subramanian Swamy.
It shows how Amazon and its subsidiaries are misusing their financial muscles to bribe and manipulate Indian government officials and is a matter of grave concern and requires immediate action as it runs counter to the vision of Prime Minister Narendra Modi for removal of corruption at all levels of government, Bhartia and Khandelwal said.
The report by India Today published on September 21 has claimed that Amazon has spent about Rs 8,456 crore on legal fee against a turnover of about Rs 42, 085 crore during 2019 and 2020.
CAIT had demanded action against the company under the prevention of corruption act.