Amazon moves Delhi High Court against ED probe into Future Group deal

E-commerce giant Amazon Wholesale India Private Limited (Amazon) has moved the Delhi High Court seeking quashing of the investigation by the Enforcement Directorate (ED) into its 2019 deal with the Future Group [Amazon Wholesale India Private Limited & Anr v The Directorate of Enforcement & Ors]..In its petition, Amazon has termed the investigation a “fishing and roving” inquiry, adding that the ED had sought details of privileged legal advice and opinions from Amazon and other information not connected with the Future group deal.The petition highlighted a notice from the ED dated February 19 seeking details of its investment in Future Group. The notice, according to Amazon, demanded copies of agreements, bank account details and other internal communications.Amazon has alleged that this shows that the ED is conducting a much wider probe as it has also sought details of big vendors on Amazon’s e-commerce website. "The request for information/documents does not limit itself to the investment in the Future Group but also pertains to information/documents pertaining to the sellers who offer their goods/services on the online marketplace operated by Petitioner No. 2, which again has no causal link to Petitioner No. 1 or the Future Group Transaction," read the petition. It further added that while Amazon is ready and willing to cooperate with the investigation, the privileged and legal opinions sought by the ED is not only beyond the scope of investigation but also contrary to law. "The opinions and legal advice/strategy obtained by Indian entities of Amazon are covered by attorney client privilege as well as litigation privilege. Accordingly, the ED cannot compel Petitioner No. 1 to submit privileged legal advice and legal opinions given by law firms/advocates and legal counsel of Indian Amazon entities," the petition said. .According to the Delhi High Court website, the matter will be heard on Thursday by Justice Rekha Palli..The ED has been probing Amazon's nearly $200 million investment in the Future Group for alleged violations of the foreign investment laws..The Amazon-Future Group deal has been embroiled in several legal battles as a result of which the sale of Future’s assets to Mukesh Ambani owned Reliance Industries Limited has been stalled.Just last week, the Competition Commission of India (CCI) had suspended its two-year-old approval for the deal. The CCI had also imposed a fine of ₹202 crore on Amazon for hiding facts and making false statements while seeking regulatory approvals in 2019.