قالب وردپرس درنا توس
Home / Business / Exclusive: Amazon tells Indian regulators that its partner “Future Retail” is misleading the public

Exclusive: Amazon tells Indian regulators that its partner “Future Retail” is misleading the public



New Delhi (Reuters)-Amazon.com Inc Amazon Complained to the Indian market regulator, its local partner Future Retail Ltd FRTL.NS A letter seen by Reuters revealed that the company misled shareholders by misrepresenting it was fulfilling its contractual obligations to the US e-commerce giant.

File picture: September 18, 2018, on the outskirts of Bangalore, India, an Amazon employee walks through the revolving door inside the Amazon Logistics Center (BLR7). REUTERS/Abhishek N. Chinnappa

Amazon and Future Group are in a fierce legal dispute, which sold its retail assets to Reliance Industries Ltd led by Mukesh Ambani in August. trust 3.4 billion US dollars. Amazon claimed that the transaction violated Future̵

7;s 2019 agreement.

This dispute has not only strained the relationship between Amazon and Future Retail, one of India’s largest retailers, but also strained relations with Asia’s richest man Ambani and his Reliance group. .

Amazon won an order last Sunday to suspend the Singaporean arbitrator used by the parties in the dispute to stop the deal with Future. The Indian retailer then said in a press release that it has complied with all agreements and will not back down due to the arbitration process.

Amazon said in a letter to Ajay Tyagi, Chairman of the Securities and Exchange Commission of India (SEBI) on Wednesday, that Future’s press release and stock exchange’s disclosure violated Indian regulations and urged regulators to investigate the matter but did not approve the transaction.

Amazon’s letter mentions: “Such disclosure violates the public interest, misleads public shareholders… and makes fraudulent behavior exist for a long time only for the benefit of Bijanis.”

Spokespeople for Future Group and the Biyani family declined to comment. A source in the Mirae Group denied Amazon’s allegations, saying that it did not commit any fraud or misleading the public or shareholders.

Amazon declined to comment on this letter. The content of the letter has not been reported before. Reliance and SEBI did not respond to requests for comment.

“Irreparable harm”

Amazon said that this 2019 transaction invested nearly $200 million in the Future division, which included clauses stating that the Indian group could not sell its retail assets to anyone on the “restricted person” list, including Reliance.

Reliance acquired Future’s retail, wholesale and other businesses in August, and the company said it plans to “immediately exercise its rights and complete the (Future) transaction…”.

Facing the dispute, Amazon led by Jeff Bezos is already fighting India’s stricter foreign investment rules and antitrust cases. India is one of India’s main growth markets and has committed to invest 6.5 billion. Dollar.

Some Indian lawyers believe that the Singaporean arbitrator’s order to support Amazon cannot be automatically executed and requires the approval of the Indian court. But Amazon told SEBI that Amazon considers the order to be binding. The letter required the regulator to “suspend review of the transaction.”

Amazon’s letter stated that SEBI’s actions in this matter “will make listed companies accountable for their transactions, which will improve the convenience of doing business in India”.

Amazon said the future deal with Reliance means that the American giant will lose the prospect of becoming the single largest shareholder of the Indian retailer, which has an “irreplaceable and extensive network” of more than 1,500 retail stores.

Future argues that it has reached a deal with Reliance because its retail business has been severely hit during the COVID-19 pandemic, so it is vital to protect all stakeholders.

The arbitrator, former Singapore Attorney General VK Rajah, supported Amazon in the October 25 order, saying: “The law requires merchants to fulfill their contractual commitments.”

The American company told SEBI that if the Future-Reliance transaction “was implemented through complete disregard of the interim (arbitration) award, it would cause irreparable harm to Amazon.

Reporting by Aditya Kalra in New Delhi; Other reporting by Abhirup Roy in Mumbai; Editing by William Mallard


Source link