New Delhi: In a letter to Sushil Kumar, Special Director, Enforcement Directorate, CAIT alleged that Amazon’s investments in India are in violation of the provisions of Foreign Exchange Management Act, 1999 (‘FEMA Act’) and the Rules and Regulations.
“Amazon.com Inc. (‘Amazon’) is one of the world’s biggest global corporations, having unbridled access to financial and information resources. Amazon has been operating in India since 2012. Amazon, in every one of its investments and businesses in India, has been brazenly and flagrantly violating the laws, rules and regulations of this Country causing untold misery to crores of small traders (by resorting to predatory pricing ) who are sought to be protected by the FDI Policy and the FEMA Rules and Regulations,” CAIT said.
CAIT alleged that Amazon, through Amazon Seller Services Private Ltd (‘Amazon India’) and other wholly owned subsidiaries and benamis, have been carrying on multi brand retail trading (inventory-based model of e-commerce) in the garb of marketplace-based model of e-commerce in complete violation of FDI Policy, Press Notes and FEMA Act, Rules and Regulations.