The world’s largest online retailer Amazon has come under the lens of the Enforcement Directorate for possible violations of India’s FDI rules for online retail, at least two people familiar with the development, told ET NOW.This comes at a time when Amazon founder Jeff Bezos is betting big on India and Prime Minister Narendra Modi is trying to woo top dollar by talking about the ease of doing business here.Sources told ET NOW that the ED has sought information regarding Amazon’s business model and that it is studying e-tailer’s model of online marketplace in India. So far, no notice has been sent to the company, with the ED is still trying to establish if there are violations.Amazon India did not reply to e-mail queries sent on Tuesday and an Amazon spokesperson told ET NOW that the company will not comment on this story.However, Amazon is not alone. This is part of a wider probe that the ED has initiated into a dozen e-commerce companies in India. It began with the Reserve Bank of India sending ED a reference to probe the business models of a few e-commerce companies. This led ED to investigate other companies using similar business models.ET NOW recently reported that the ED found Flipkart guilty of violating FEMA provisions and may impose a penalty to the tune of Rs 1000 crore.As per the FEMA norms, ED can slap a penalty up to three times of the contravention or foreign investment received in a case.Officials in ED explain that if a show-cause notice is issued the company is given the opportunity to contest before the Directorate.Foreign Direct Investment norms in India do not permit FDI in e-commerce, particularly in the business to consumer models. As a result, most e-tailers currently follow the online market place model, connecting sellers to buyers and getting a fee from the sales.ED is not the only government agency to look closely at Amazon’s model here. A few days back, the commercial taxes department in Karnataka claimed Amazon made a back-door entry to enter the Indian market instead of opening its own subsidiaries.Amazon, however, refuted the same, stating that, “At the outset we are in compliance of all FDI rules; we follow the marketplace model in India where sellers of all sizes use our platform to reach customers across the country. Specifically on the local Karnataka tax issue, we have been working with the relevant authorities to address their concerns. We understand this to be a case where the laws have not kept pace with the new-age online business models that enable a faster, convenient and nationwide access to customers for sellers, especially small and medium businesses, at significantly low costs.”These hitches come at a time when the e-commerce sector is seeing unprecedented investor interest and sky-high valuations. Amazon recently committed a $2 billion investment in India a day after Flipkart raised a $1 billion.However industry sources say the government’s interference is unlikely to dampen investor sentiment. “These are issues that have to do with compliance in structure and the way these companies have implemented and operationalised it. We believe that the government will ultimately work to do the right thing,” said an venture capitalist with a US-based firm, who did not wish to be identified.