Will not force Amazon employees to appear physically during pandemic: ED tells Delhi High Court

The Directorate of Enforcement (ED) told the Delhi High Court on Wednesday that it will not force Amazon’s employees to appear physically for the ongoing probe into the Amazon-Future Group deal till the COVID-19 situation subsides [Amazon Wholesale India Private Limited & Anr v The Directorate of Enforcement & Ors]..The assurance was given by Solicitor General (SG) Tushar Mehta and Additional Solicitor General (ASG) SV Raju before Justice Rekha Palli..This was after Amazon’s counsel, Senior Advocate Sidharth Luthra, informed the single-judge that ED officials had called one of the legal assistants who had a two-year-old daughter, for questioning.“This is not the way to react. They are not criminals. You may have the right to investigate but that letter was uncalled for,” Justice Palli remarked.The Court, however, expressed its displeasure over the fact that Amazon had approached the media with its petition but failed to supply the Court with copies of the judgments it sought to rely upon.“You have time to go all over the press but you don't have the courtesy to share the judgment. I read it in December that this case is listed,” the Court remarked.The Court also declined to pass any order restraining ED from proceeding with the probe.The Court has now adjourned the matter till January 12, directing Amazon's counsel to supply copes of the judgments cited by it to the Court. .E-commerce giant Amazon Wholesale India Private Limited (Amazon) has moved the Delhi High Court terming 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. .In its petition, Amazon alleged that a notice was sent to them by the ED dated February 19 seeking details of its investment in the Future Group. The notice, according to Amazon, demanded copies of agreements, bank account details and other internal communications.Amazon 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," the petition said.It added that while Amazon is ready and willing to cooperate with the investigation, 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 plea stated..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 seen several legal battles as a result of which the sale of Future’s assets to Reliance has been stalled.The deal, apart from being the subject of arbitration before a Singapore tribunal, has also come up before the Delhi High Court as well as the Supreme Court at various stages.Last month, the Competition Commission of India had suspended the clearance for the deal, stating that Amazon had failed to notify it about certain crucial details of its acquisition of a 49 per cent stake in Future, as required under Section 6(2) of the Competition Act. It had, therefore, also imposed of a penalty of ₹202 crores on Amazon.