“In what could potentially set off a probe under the US Foreign Corrupt Practices Act (FCPA), online retailer Amazon is conducting an internal investigation into a whistleblower complaint that has alleged bribing of government officials in India by some of its legal representatives. An Amazon India executive told The Indian Express that the investigation pertained to “certain accounting irregularities in payments” made to the company’s legal consultants, for which a Delhi-based in-house counsel has been sent on leave and a junior staffer at one of the law firms hired by Amazon India has been laid off.

Responding to a set of e-mail queries sent by this newspaper, asking the status of the probe, whether the company also planned to have an external agency look into the matter or Indian authorities were notified about the issue, an Amazon spokesperson wrote: “We have zero tolerance for corruption. We 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”.

In a report on Monday, The Morning Context said a part of the legal fees by Amazon to one or more of its legal representatives have been “funnelled” into bribing government officials. The report said that while the internal investigation being carried out by Amazon was focussed on the role played by the company’s senior legal counsel, who has been sent on leave, and a Delhi-based independent lawyer, it was also conducting a broader investigation into the issue and was questioning its other legal representatives for the same. This includes law firm AZB & Partners.

“The matter being investigated is very old and relates to mismatch in the utilisation of funds given to the company’s in-house counsel as well as the law firms retained by Amazon India,” the executive cited above, said. Mails sent to AZB & Partners did not elicit any response. Any implication of Amazon’s employees in India towards bribing government officials could expose the e-commerce firm to the FCPA in the US, which is enforced by the Securities and Exchange Commission and the US Department of Justice. The FCPA law prohibits US firms and individuals from paying bribes to foreign officials to further business deals. In the past several firms have been investigated by the US SEC for FCPA violations. In 2019, IT services firm Cognizant agreed to pay $25 million to settle violations of the anti-bribery, internal accounting controls, and record-keeping provisions. Two of Cognizant’s former officials were also charged with authorising a $2.5 million bribe paid to a government official in India.

Similarly, in 2017, snack-maker Mondelez International, which owns chocolate brand Cadbury, agreed to pay a $13-million-penalty for FCPA violations arising out of one of its subsidiaries making illicit payments to obtain government licenses and approvals for a chocolate factory in Baddi, Himachal Pradesh.

Meanwhile, in India, following the reports of alleged bribery by Amazon officials, traders’ body Confederation of All India Traders (CAIT) has demanded a CBI inquiry saying the matter relates to the credibility of the government and is counter to the vision of removing corruption at all levels within the government. CAIT, which has sent a communication to Commerce Minister Piyush Goyal, said it is also moving a representation to the US SEC Chairman Gary Gensler to demand a “fair and independent probe” into the issue.”

“Amazon has reportedly initiated an investigation against its legal representatives for allegedly bribing Indian government officials. The development came to light early last week, after a whistleblower, reportedly, at the eCommerce platform reported that few such representatives were funnelling money paid by Amazon to bribe Indian officials.

The said whistleblower had reportedly named Rahul Sundaram, senior corporate counsel at Amazon, and Vikas Chopra, an independent counsel based out of New Delhi, in his complaint. According to a report by The Morning Context, Sundaram has been sent on leave while Amazon conducts an internal investigation.

Chopra, on the other hand, has claimed that he never really worked with Amazon directly. Instead, he was hired by corporate law firm AZB & Partners to handle Amazon-related legal work on its behalf. However, it’s still not clear on the sort of tasks Chopra was handling.

The New Delhi-based independent counsel Chopra sent a legal notice to the Morning Context, which first reported the development. In the notice, he mentioned that his fee bills are raised to AZB & Partners and not Amazon. Meaning, he was working in association with the said law firm and not Amazon directly.”

“The whistleblower complaint points to the role played by Vikas Chopra an independent advocate in New Delhi who works with Amazon as an outside counsel for hire. The complaint specifically alleges that legal fees paid to Chopra by Amazon have been funnelled into bribing government officials. An email with the list of questions sent to Chopra did not elicit any reply. Amazon is conducting a wider investigation to get to the bottom of the issue. The company has also been seeing asking questions of its other legal representatives in the country. Most multinational companies employees a slew of legal firms on retainer agreements. In India Amazon work with some of the largest form including AZB & Partners. Two people with direct knowledge of the matter said that Amazon has reached out to AZB with questions. On the heels of this investigation earlier this month, AZB be laid off by Kaustabh Sinha a junior counsel at the firm who has worked on legal matters relating to Amazon. Both people cited above said that Sinha was privy to information pertaining to the case but was let go the moment investigation became a hot potato. The morning contact could not independently verify the circumstances around Sinha’s departure from the firm.”