Amazon to end operations in India due to complicated laws?

In the time when e-commerce businesses are booming in the country, there may be some dark news on the horizon. According to media reports, e-commerce giant Amazon may discontinue business in India due to 'substantial uncertainties' in interpretation of laws. Amazon may also decide to pull plug on their business in China. 

According to a report published in International Business Times, Amazon in a regulatory filing to the US Securities and Exchange Commission (SEC) has expressed apprehension that they may be unable to continue business in India or China for a very long time. The main cause of concern for them is fines, cancellation of licence and complete shutdown if their activities are found in contrivance with existing or future laws in China or India. 

Amazon believes that there are many grey areas in Indian laws, and the Indian government can take a contrary stand to what they take. In India, there is a cap on foreign ownership in online multi-brand retail activities. So in India, Amazon takes help of third party sellers to do business.  There have been reports of Indian government looking into Amazon's business in the country. The probe is regarding if Amazon is breaking the law in any manner about FDI in retail. It remains to be seen if the Indian government takes any step to allay fears of the online retail giant.