Delhi High Court To Hear In January Amazon's Plea Challenging Enforcement Directorate's Jurisdiction To Investigate Matters Beyond It's Power Under FEMA

The Delhi High Court will hear on January 5 next year, the plea filed by Amazon Wholesale India Private Limited India challenging the jurisdiction Directorate of Enforcement and its officers to investigate it in the matters beyond the scope of power of the ED under the Foreign Exchange Management Act.

The plea which was listed for hearing today before a single bench of Justice Rekha Palli, could not be heard as the she was on leave.

Calling it a fishing and roving investigation, Amazon Wholesale India Private Limited has claimed that ED had issued various summons to it's employees for a transaction which is completely unconnected. 

It has also been stated that the ED had sought, some of them, the legal advice and privileged legal opinions that have been received from time to time by Indian subsidiaries of Amazon.com, Inc in India.

Referring to the dispute between Amazon NV and Future Group, the plea states that a Directive was received by Amazon India from the ED seeking information pertaining to the Arbitration, and matters which were already being investigated by the Bangalore Regional Office of ED.

It was the case of the petitioner that 10 out of the 16 documents sought in the Directive pertained to the transaction with the Future Group and Amazon NV and not Amazon India and Amazon Seller Services Private Limited.

Accordingly it was submitted that the said Directive was addressed to and received by Amazon India, who had nothing to do, directly or indirectly, with the Future Group or Amazon NV's investment in the Future Group.

"As stated in the summons, while the investigation relates only to the the "Future Group", the ED is seeking data regarding legal fees spent in the past 10 years from a number of entities not connected with the Future transaction. In this regard, it may be noted that the Future Group transaction with Amazon NV only took place in 2019. These questions raised along with other documents sought by ED point towards a fishing and roving enquiry," the plea reads.

Accordingly, the plea prays for cancellation of the Directive dated 19 February 2021 and all other proceedings commenced by ED in the matter.

It also prayed for directions on ED to not conduct a fishing and roving enquiry in matters covered by legal privilege and seek for information falling outside the purview of FEMA.

Title: Amazon Wholesale (India) Pvt. Ltd. and Anr. v. The Directorate of Enforcement, Through Director of Enforcement and Ors.