In a very important communication sent to Government, Confederation of All India Traders (CAIT( has explained with facts that Amazon’s clarification on legal & Professional charges are completely baseless and we reiterate their demand for a CBI investigation against Amazon’s alleged bribery scandal. Text of CAIT Representation is as follows:
Confederation of All India Traders
Ref No. 3287/1/50
01st October 2021
Shri Piyush Goyal,
Hon’ble Minister of Commerce and Industry,
Government of India,
Udyog Bhawan,
New Delhi
Subject: Urgent investigation against Amazon for irregularities in Legal Professional Charges
Dear Sir,
This is in continuation of our earlier letter dated September 20, 2021 and a clarification issued by Amazon on September 30, 2021.
At the outset we would like to submit before you that Amazon’s clarification on legal professional charges is a blatant lie in order to hide their illegal business practices and is inconsistent with regulatory filings of Amazon and its group companies ( The extracts of their filings is enclosed at Annexure I). This clarification raises more questions than answers and therefore, a serious investigation is urgently required.
The media report dated September 21, 2021 in “India Today” initially showed the following expenses under the head of “Legal Professional Charges”
| Company (Parent: Amazon.com, Inc.) |
Legal Charges as reported by India Today FY 19-20 (in Cr) | Legal Charges as reported by India Today FY 18-19 (in Cr) | Total Income FY 19-20 (in Cr) | Total Income FY 18-19 (in Cr) |
| AMAZON INDIA LIMITED | 1072 |
3493 |
0 | 0 |
| AMAZON RETAIL INDIA PRIVATE LIMITED | 208 | 64 | 725 | 150 |
| AMAZON SELLER SERVICES PRIVATE LIMITED | 1968 | 1448 | 11000 | 7800 |
| AMAZON TRANSPORTATION SERVICES PRIVATE LIMITED |
106 | 55 | 2960 | 2078 |
| AMAZON WHOLESALE (INDIA) PRIVATE LIMITED | 66 | 43 | 3385 | 11250 |
| AMAZON INTERNET SERVICES PRIVATE LIMITED | – | 23 | – | 2737 |
| Total | 3420 | 5126 | 18070 | 24015 |
| Total of 2 years | 8546 | 42085 | ||
| Legal Professional Charges as % of Total Income | 20.3% | |||
Subsequently, “India Today” had clarified that it had misread Amazon’s legal professional charges as INR 8546 Crore and that the actual figure was INR 5220 Crore.
Further, Amazon in its clarification on September 30, ASSPL has disassociated itself from one company i.e. Amazon India Limited (AIL) meaning thereby that the remaining companies, as reported by India Today, are related to ASSPL.
Pursuant to reports by prominent sections of the media, including India Today, we have verified the legal professional charges mentioned by Amazon and its group companies (other than Amazon India Limited) in their regulatory filings before Ministry of Corporate Affairs (MCA). These are represented in the table below:
| Company (Parent: Amazon.com, Inc.) | Legal Charges as per MCA records FY 19-20 (in Cr) |
Legal Charges as per MCA records FY 18-19 (in Cr) |
Legal Charges as per MCA records FY 17-18 (in Cr) | Total Income FY 19-20 (in Cr) | Total Income FY 18-19 (in Cr) | Total Income FY 17-18 (in Cr) |
| AMAZON RETAIL INDIA PRIVATE LIMITED | 207 | 63 | 1 | 726 | 140 | 0 |
| AMAZON SELLER SERVICES PRIVATE LIMITED | 1967 | 1448 | 1145 | 11028 | 7778 | 5018 |
| AMAZON TRANSPORTATION SERVICES PRIVATE LIMITED | 106 | 54 | 26 | 2964 | 2079 | 1584 |
| AMAZON WHOLESALE (INDIA) PRIVATE LIMITED | 65 | 42 | 43 | 3388 | 11250 | 12246 |
| AMAZON INTERNET SERVICES PRIVATE LIMITED | 45 | 23 | 27 | 4216 | 2740 | 1235 |
| Total | 2390 | 1630 | 1242 | 22322 | 23987 | 20083 |
| Total of 3 years | 5262 | 66392 | ||||
Hence, in pursuance of the clarification given by Amazon and the verified data from their regulatory filings, there is an impending need for Amazon to clarify the following:
1. Towards which legal professionals, Amazon had spent INR 5262 Crore?
2. Further, even if one were to accept Amazon’s clarification that the legal charges were merely INR 52 Crore, Amazon must clarify without delay to whom was the remainder i.e. INR 5210 Crore (INR 5262 Crore minus INR 52 Crore) paid as professional charges?
Sir, Amazon is hell bent on discrediting our Prime Minister Shri. Narendra Modiji’s tireless efforts to protect small traders and safeguard their interests. Amazon’s business practices have instead been destroying these very traders and has caused large scale unemployment in the sector.
It is only expedient in public interest that an urgent and time-bound inquiry by CBI must be ordered into Amazon India’s self-admitted charges. It is also suggested that Amazon India’s operations, in all forms, must be suspended before it does any more damage or resorts to any other financial irregularity. A strong example must be set here so that it proves to be a deterrent for Amazon and companies like it from taking Indian law and government agencies for granted.
We look forward to your kind consideration and hope that you will take immediate action against Amazon for its actions.
Thanking you. With kind regards
Yours truly
Praveen Khandelwal
National Secretary General
Confederation of All India Traders
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