Amazon Conducting Internal Investigation Regarding Bribery Allegations in India. CAIT has requested CBI investigation

Responding to a media house’s report about Amazon investigating internally against bribery charges, Amazon said that they will not tolerate any act of bribery and will thoroughly look after the corruption allegation.

In a report by The Morning Context, it was mentioned that the e-commerce firm is investigating their legal representatives’ action of funneling the legal fees paid to them by the firm into bribes in India.

According to a Spokesperson of Amazon, they do not tolerate such illegal actions and take appropriate steps if the allegations are proved. But didn’t revealed anything about the current status of the investigation.

Amazon has sent one of its senior corporate counsels, Rahul Sundaram on leave after the allegations were made. It will check whether the government officials in India were bribed using the legal fees paid by it to the legal representatives.

With more than 1 lakh professionals in India, Amazon contributes over $6.5 billion to its online market. It has also committed to generating over 2 million job opportunities for Indians by 2025.

According to a Reuters report in February 2021, Amazon has tried to put an obstacle in implementing foreign investment rules, impacting its business in India by publically misrepresenting its partnership with sellers in India.

Another allegation on Amazon and Flipkart has related the anti-competitive practices. The Competition Commission of India (CCI) is undertaking the investigation. Even the Karnataka High Court refused the request to stop the investigation. The firm has been accused of giving special treatment to selected sellers.

The Confederation of All India Traders (CAIT) has communicated to the Union Commerce Minister of India, Piyush Goyal requesting CBI inquiry regarding the bribery case of Amazon’s legal representatives. It has also reached out to the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler.

According to the National President and secretary-general of CAIT, BC Bhartia and Praveen Khandelwal, respectively, CBI investigation is essential to check whether the bribery was done to settle law violation allegations or for the ongoing investigation.

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