Amazon objected to the acquisition of Reliance Group’s Future Stores

Amazon has said in a public notice that the transfer of retail assets of Future Retail Limited (FRL) is being done in a clandestine manner by cheating courts, tribunals and statutory authorities.

“It is now learned that FRL and its promoters are seeking to remove the grounds of dispute by allegedly transferring and alienating the retail assets of FRL in favor of MDA Group,” Amazon said in a public notice.

Amazon’s notice said, “It may be noted that Future Group and its promoters made false submissions before the Supreme Court, which held that the retail assets shall remain vested in Future Retail, until The scheme of arrangement is not approved by the National Company Law. Tribunal. Such false statements were made knowingly.”

It comes in the middle of a protracted litigation, which Future and Amazon have brought before the Supreme Court on the proposed . facing for 24,713 crore deal between Future and Reliance Group.

Issuing a notice can further complicate and prolong the legal battle between the two.

Both Amazon and Future did not comment in this regard. However, people familiar with the matter said that “the conversation before the Supreme Court has nothing to do with the notice that has been issued. It is only pointing to the action taken by Future as reported in the media.” have been reported.”

“Amazon hereby gives notice to all concerned that any attempt by the promoters of Future Group to transfer, dispose of or alienate any of its retail assets is in violation of an arbitral tribunal, which operates as an Indian court order and any party that aids in such fraud and delinquent actions shall be liable to civil and criminal consequences under the law. This notice has been issued while reserving all rights under the law,” the notice read.

Reliance has taken over around 500 stores operated by the Future Group parent firm of hypermarket chain Big Bazaar, which is facing a severe financial crunch.

The acquisition of Reliance started on the night of 25 February. Future – which has over 1,700 outlets, including the popular Big Bazaar store – has been unable to make lease payments for some of its outlets. As a result, Reliance transferred the leases of some stores to its name and sublet them to Future to operate the stores.

Reliance has started taking over the premises in which Future Retail is operating its stores such as Big Bazaar and replaced them with its own brand stores. It has also started hiring employees of Future Retail stores and bringing them on the payroll of Reliance Retail.

There is an ongoing legal tussle between Amazon and Future Group over the sale of Future’s retail assets to Mukesh Ambani-led Reliance Industries Ltd. The proposed property is worth the sale deal In August 2020, there was an entry of 24,713 crores between Future and Reliance.

The sale of the asset is being opposed by Amazon.com NV Investment Holdings LLC, arguing that its investment 1,400 crore in Future Coupons, which is one of the promoters of Future Retail, allows it to block the sale of assets to Amazon’s competitors.