Amid reports of Amazon probing bribery-related charges against a number of its legal representatives in India, the US e-commerce giant on Monday said it takes allegations of improper actions seriously and investigates them fully to require appropriate action.
Without confirming or denying allegations, Amazon said it’s “zero tolerance for corruption”.
According to a report by The Morning Context, Amazon has initiated an investigation against a number of its legal representatives for allegedly bribing Indian organization. Its senior corporate counsel has reportedly been sent inactive during this matter.
When contacted, an Amazon spokesperson said: “We have intolerance for corruption. We take allegations of improper actions seriously, investigate them fully, and take appropriate action. We don’t seem to be commenting on specific allegations or the status of any investigation at this time”.
A person responsive to the event said US-headquartered companies like Amazon take whistleblower complaints seriously, especially those associated with payment of bribes to foreign organisation so as to retain or obtain business. this is often also to confirm compliance with corporate governance rules.
Meanwhile, traders’ body CAIT has demanded a CBI inquiry saying the matter relates to the credibility of the govt. and is counter to the vision of removing corruption in the least levels within the govt..
The Confederation of All India Traders (CAIT) also demanded that names of officials involved within the matter be made public and exemplary action be taken against them.
CAIT, which has sent a communication to Commerce Minister Piyush Goyal, said it’s also moving a representation to the US Securities and Exchange Commission (SEC) Chairman Gary Gensler to demand a “fair and independent probe” into the problem.
CAIT National President BC Bhartia and administrator Praveen Khandelwal said it has to be inquired whether the alleged bribery has “any reference to the continuing investigation or related with continuous violation of the law and rules by Amazon”.
These steps are required to safeguard Indian e-commerce market and therefore the retail trade from undue influence, abuse of dominance and connivance with administration, which falls under Anti-Corruption Act, they added.
The development comes at a time when Amazon is facing a hunt by fair trade watchdog, Competition Commission of India (CCI), for alleged anti-competitive practices, predatory pricing and preferential treatment of sellers.
Amazon is additionally locked during a legal tussle with Future Group. Amazon is contesting the ₹ 24,713-crore deal between Future Group and Reliance Retail Ventures Ltd and has dragged Future Group to the Singapore International Arbitration Centre (SIAC). it’s argued that Future violated the contract by stepping into the cope with rival Reliance.
Amazon and Future Group had also filed litigations in Indian courts, including the Supreme Court, on the difficulty.
Amazon is an investor in Future Coupons, that successively could be a shareholder in Future Retail Ltd.
