Amazon.com is planning to initiate criminal proceedings against its Indian partner, Future Retail. It may do so to transfer assets to its bigger rival Reliance, despite legal restrictions.
Amazon.com is planning to initiate criminal proceedings against its Indian partner, Future Retail.
Amazon.Com (Amazon) Its Indian partner Future Retail (Future Retail) is planning to initiate criminal proceedings against him. According to a Reuters report, he is doing so despite legal sanctions against his bigger rival Reliance. ,Reliance, to transfer assets. It has been said in the report that for more than a year, Amazon and Future Group have been engaged in a legal battle. The fight led to the sale of assets worth $3.4 billion to Reliance Industries of Futures (Assets Sale) is paused. Amazon has halted the sale of Future’s assets to its rival Reliance from 2020. Amazon cited breaches of certain contracts.
India’s second largest retail company Future has denied any wrongdoing. The arbitrator of Singapore and the courts of India have supported Amazon’s petition. A Reuters report said that Reliance had started taking over 500 stores of Future. The company was rebranding them as its own outlet.
Reliance transfers the lease of some assets to its name
Reliance had earlier transferred leases of certain assets of Future’s flagship supermarkets to its name, but had allowed Future to operate them. Reliance has now started taking their possession. Future has failed to pay the rent for these.
Amazon plans to initiate criminal proceedings against Future in a court in New Delhi. The company will also appeal to the court to order an inquiry into the matter. According to the report, two other sources told him that the suit could be filed by next week.
However, Future, Amazon and Reliance did not immediately react to the Reuters report.
How did the dispute between the companies start?
Let us tell you that in August 2019, Amazon bought a 49 per cent stake in Future Coupons, the promoter arm of Future Retail, for about Rs 1,500 crore. Amazon also had an agreement with Future that it can also buy information details between 3 to 10 years. Future Coupons holds 7.3 per cent stake in Future Retail, a BSE listed company of the Future Group.
A year later, in August 2020, Future Group signed a $3.4 billion asset-sale deal with Reliance Industries. On 29 August 2020, Future Group announced its agreement with Reliance, its agreement with Reliance Industries is worth Rs 24,713 crore. Since then this controversy started.