New Delhi: Amazon has launched an investigation into the conduct of its legal representatives in India following a complaint from a whistleblower who alleged that one or more of the company’s reps had bribed government officials, Indian news and analysis outlet the Morning Context reported on Monday.
The company is investigating whether legal fees financed by it was used for bribing government officials, the report said, which cited unnamed sources and didn’t identify the government officials. Amazon has placed Rahul Sundaram, a senior corporate counsel, on leave, the report (paywalled) added.
In a statement to sources, an Amazon spokesperson said the company has “zero tolerance” for corruption, but didn’t comment on the investigation.
“As far as the government of India is concerned there is ZERO tolerance towards corruption of any kind in the government,” officials said.
“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,” the spokesperson added.
India is one of the key overseas markets for Amazon. The American e-commerce firm has invested over $6.5 billion in its South Asian nation’s operations and aggressively expanded to multiple categories in recent years.
The new development comes months after Reuters reported that Amazon had secretly favored big sellers, misrepresented its ties with those firms, and used such arrangements to circumvent the South Asian nation’s foreign investment rules.
Amazon is also subject of an ongoing antitrust investigation in India. A top-level executive at the company, which made an unsuccessful attempt to appeal against that investigation, was summoned and questioned earlier this year by local police over allegations that one of its political dramas on Prime Video hurt religious sentiments and caused public anger.