Delhi HC to hear Amazon’s plea against ED investigation in Jan
NEW DELHI: The Delhi High Court on Thursday said it will hear in January a plea by Amazon challenging the jurisdiction of the Enforcement Directorate to investigate matters which are beyond its scope under the Foreign Exchange Management Act (FEMA).
The plea was listed before Justice Rekha Palli who did not hold court, and the matter is now listed for hearing on January 5.
Petitioners Amazon Wholesale (India) Pvt Ltd and Amazon Seller Services Pvt Ltd challenged the jurisdiction of the Enforcement Directorate (ED) and its officers to investigate Amazon Wholesale (India) Pvt Ltd in matters that are beyond the scope of power and remit of the agency under the FEMA.
Last month, Amazon had said it was in receipt of summons by the ED in connection with its deal with the Future Group.
The plea said the two companies -- Amazon Wholesale (India) Pvt Ltd and Amazon Seller Services Pvt Ltd -- are Indian resident entities and are challenging the investigation as it pertains to transactions that have no foreign exchange element.
It said the ED had issued a directive on February 19 this year and is conducting a “fishing and roving” investigation against Amazon Wholesale and subjecting the petitioners to proceedings without any legal basis or jurisdiction. This is causing unnecessary harassment despite their full cooperation, the plea said.
Various summons and emails have been issued to employees of Amazon Seller Services for a transaction which is completely unconnected with them, and seeking from them legal advice and privileged legal opinions that have been received from time to time by Indian subsidiaries of Amazon.com, it said The petition sought a direction to the ED to forthwith withdraw or cancel the February 2021 directive and all summons or proceedings commenced by the agency.