Ecommerce major Amazon on Tuesday published ads in leading Indian newspapers accusing Future Retail and Reliance of “fraud” following Reliance Industries sudden takeover many of Future’s stores.
In ads headlined “PUBLIC NOTICE” in leading Indian newspapers on Tuesday, Amazon said: “these actions have been done in a clandestine manner by playing a fraud on the constitutional courts in India, the arbitral tribunal and Indian statutory authorities/agency,”
Interesting development. Amazon issues public notice alleging Future Group of alienating Future Retail assets to Reliance group in violation of commitments to the Supreme Court. pic.twitter.com/wS2aHpzqQx
— Manu Sebastian (@manuvichar) March 15, 2022
On February 25, Billionaire Mukesh Ambani’s Reliance Industries took over the reins of at least 200 stores of Future Retail after the Kishore Biyani-led group failed to make lease payments to landlords. These stores will be rebranded and opened as Reliance stores. Further on March 10, Reliance Retail has sent notices to Future Group terminating the lease of an additional 835 Future Retail stores and 112 Future Lifestyle stores. Future has said in filings this month that it could not pay rent at many outlets given its distressed financial situation and that Reliance, which had taken over many of its leases, had issued it with termination notices.
Amazon has been contesting the planned $3.4 billion sale of Future Group’s retail assets to Reliance and the case is currently before the Supreme Court. The ecommerce giant has argued that Future violated the terms of a 2019 deal the companies signed when the US e-commerce giant invested USD 200 million in a Future Group unit. Amazon’s position has been backed by a Singapore arbitrator. The development comes comes even though both FRL and Amazon have held settlement talks earlier this month over their long-running dispute. This comes even as both FRL and Amazon have held settlement talks earlier this month over their long-running dispute over the RIL deal.