No immediate relief for Amazon against ED probe as high court defers hearing

The Delhi High Court on January 5 deferred the hearing on Amazon’s plea challenging the Enforcement Directorate's probe till next week while the ED assured the court that it would observe some restraint in the matter.

While adjourning the case, the court called on the agency not to order the physical presence of Amazon India’s office-bearers in Delhi in the light of the COVID-19 situation. The court suggested that the agency could resort to video conferencing following which Additional Solicitor General SV Raju representing the agency assured the court that ED would “hold its hands” on this.

A single-judge bench of Rekha Palli refused to give any immediate relief to the US-based e-commerce company on its plea after making a prima facie observation that the court was not convinced with Amazon’s case. However, for want of certain documents and precedents to be placed on record, the court proceeded to defer the hearing.

The American e-commerce giant had approached the court seeking relief against the investigation launched by ED. The agency began its probe against Amazon over alleged violation of the Foreign Exchange Management Act, 1999 provisions in the 2019 investment deal entered into by Amazon and a Future group firm – Future Coupons Pvt Ltd.

Amazon questioned and challenged the jurisdiction of the ED in carrying out this probe under FEMA terming it a “fishing and roving investigation”.

The US-based company alleges that the investigation agency is causing harassment to its Indian arm and office-bearers by launching a probe without any legal basis or jurisdiction. Amazon’s officials in India received summons from the ED and were questioned about privileged legal opinion received by them, the company claimed in its plea before the high court.

Claiming that the information sought by the ED is privileged and as such violates the fundamental rights of the company, Amazon has prayed for the court to direct ED to withdraw its directives pertaining to this probe.

Amazon has fervently averred that ED is beyond the scope of its power in asking Amazon to furnish a record of its former employees in the legal team as well as accounts of the legal opinion received by the company and expenses made towards legal fee.

The case will now be heard next on January 12.