The Indian firm of Amazon denied reports that the company executives had been charged after two men used the website to smuggle cannabis.
It comes after the media reported that police in the central state of Madhya Pradesh had blamed the leaders.
Amazon India Seller Services was named by the police in connection with the case in the central state of Madhya Pradesh.
However, while the case is under investigation by the authorities, no charges have been raised.
“Reports that Amazon executives have been arrested or charged as part of this case are incorrect and we are not aware of any Amazon executives named in the investigation,” the company told the BBC.
The company also said it was assisting law enforcement with the investigation.
“Amazon has zero tolerance for misconduct and takes strict action against individuals or third parties for violating our policies or applicable laws,” the company said in a statement.
The investigation came after police arrested two men last week on suspicion of trafficking 20 kg of drugs in other Indian states.
Police say the men traded cannabis on the site under the pretext of selling stevia leaves, a natural sweetener.
It is estimated that a total of 1,000kg of marijuana, worth around $ 148,000 (£ 110,000), was allegedly sold using the website.
The case is the latest legal issue faced by the Indian firm of Amazon, which is also facing a competition investigation in the country.
Along with Flipkart, a subsidiary of US retail giant Walmart, Amazon India has been investigated by regulators to claim that it has given preferential treatment to some sellers.
In September, Amazon also reportedly launched an internal investigation after claiming that one or more of its Indian employees had bribed officials.
In recent years, Indian authorities have significantly stepped up their efforts to crack down on both the trafficking and use of illegal drugs.
Many of the country’s high-profile actors and television personalities have been scrutinized by narcotics officials over the past year.
Last month, Aryan Khan, the 23-year-old son of Bollywood superstar Shah Rukh Khan, was arrested on suspicion of taking recreational drugs at a party.
The case was the subject of intense media coverage in India.
He denied the charges against him.
This story has been updated to clarify that Amazon India employees investigated by the police have not been charged.
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