NEW DELHI: The South Delhi Municipal Corporation has sealed a building at Vasant Kunj that housed a large Amazon delivery centre citing illegal constructions, dealing a blow to the e-commerce firm in the key market of National Capital Region ahead of the festive season.
Amazon said it was a leased facility and not one it owned. “Customers whose deliveries were impacted have been informed, and have been offered a refund or replacement for their order,” an Amazon India spokesperson said in an emailed response to ET’s questions.
Two people in the know of the mater said the landlord had undertaken additional construction in the building where Amazon occupied one of the floors. Amazon is planning to appeal to the MCD (Municipal Corporation of Delhi) Appellate Tribunal if the company can take the inventory out of the centre, one of the people said.
Amazon Transportation Services, the company’s unit that ran the facility, had earlier filed a case in the Delhi High Court in a bid to retrieve inventory. “They (Amazon Transportation) have withdrawn the case and is now planning to appeal to the MCD Appellate Tribunal,” the person said.
Amazon operates three larger warehouses in Haryana at Sonipat, Jamalpur and Tauru that cater to Delhi-NCR and nearby states. In September, Amazon opened its 250,000-sq-ft fulfilment centre in Jamalpur, outside Delhi’s satellite city of Gurugram, with close to 1.2 million cubic feet of storage space.
Amazon uses these centres as last-mile delivery points on a hub-and-spoke model. Every metropolitan city generally has a couple of such delivery centres
The development was first reported by ET Retail.com