India’s Enforcement Directorate To Probe Amazon’s Alleged Flouting Of FDI Rules
Reuters’ bombshell report on Amazon has put it in the cross-hairs of India’s Enforcement Directorate. A senior Enforcement Directorate source told Reuters that “we will be examining findings” of the story. This flew in the face of India’s FDI regulations, which require e-commerce companies to only act as platforms for individual sellers, and not sell or own inventory themselves. But Amazon allegedly gave preferential treatment to entities it indirectly owned stakes in, and thus circumvented India’s FDI rules. “In last several years, there have been (a) number of changes in regulations; Amazon has on each occasion taken rapid action to ensure compliance,” the company said.