Amazon is in the news about bribery related charges against some of its legal representatives in India. The US based e-commerce platform makes the point clear that they are taking the allegations seriously and will investigate.
Neither confirming nor denying the allegations, Amazon said in a statement it has “Zero tolerance for corruption”.
“We have zero tolerance for corruption and take allegations of improper actions seriously, investigate them fully, and take appropriate action. We are not commenting on specific allegations or the status of any investigation at this time”.
– Amazon spokesperson
US-headquartered companies, such as Amazon, take whistleblower complaints seriously, especially cases related to bribery on a foreign soil to foreign government officials. This is also to ensure compliance with corporate governance rules.
Meanwhile, traders’ body CAIT has demanded CBI inquiry. Since the matter relates to the credibility of government and is against the vision of removing corruption within the government.
CAIT has sent a communication to Commerce Minister Piyush Goyal saying it is also moving a representation to the US Securities and Exchange Commission (SEC) Chairman Gary Gensler to demand a “fair and independent probe” into the issue.
Statements:
It needs to be inquired whether the alleged bribery has “any connection with the ongoing investigation or related with continuous violation of the law and rules by Amazon”.
– CAIT National President BC Bhartia and Secretary General Praveen Khandelwal.
These steps are required to protect Indian e-commerce market and the retail trade from undue influence, abuse of dominance and connivance with government officials, which falls under Anti-Corruption Act, they added.
The development comes at a time when Amazon is facing a probe by fair trade watchdog, Competition Commission of India (CCI), for alleged anti-competitive practices, predatory pricing and preferential treatment of sellers.
Amazon is also in a legal tussle with Future Group. Amazon is contesting the Rs. 24,713-crore deal between Future Group and Reliance Retail and has dragged Future Group to the Singapore International Arbitration Centre (SIAC). It has argued that Future violated the contract by entering into the deal with rival Reliance.
Amazon and Future Group had also filed litigations in Indian courts, including the Supreme Court, on the issue.
Amazon is an investor in Future Coupons, that in turn is a shareholder in Future Retail.
(image credits: Wikimedia Commons)
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