With Newspaper Ads, Amazon Steps Up Battle With Reliance: 10 Points

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With Newspaper Ads, Amazon Steps Up Battle With Reliance: 10 Points

With Newspaper Ads, Amazon Steps Up Battle With Reliance: 10 Points

Amazon has been contesting the sale of Future Group’s retail assets to Reliance.

New Delhi:
U.S. retail giant Amazon.com Inc on Tuesday accused Future Retail and Reliance Industries (RIL) of “fraud”. In a notice published in the newspapers, Amazon also warned the founders of Future Retail that any effort to transfer its assets to RIL would be liable for civil and criminal consequences.

Here’s Your 10-Point Cheatsheet To This Big Story:

  1. The U.S. giant said any such transfer violated the binding orders of an arbitration tribunal and is against the submissions made before the Supreme Court. The assets would remain with Future Retail until the National Company Law Tribunal (NCLT) approved a merger with Mr Ambani’s conglomerate, Amazon added.
  2. This move comes after billionaire Mukesh Ambani-led group took control of some Future Group stores.
  3. Future Group – which has more than 1,700 outlets, including popular Big Bazaar stores – has been unable to make lease payments for a bulk of its outlets.
  4. Future has said in filings 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.
  5. With landlords insisting on payments or shutting down of stores, RIL transferred the leases of some stores to its name and sublet them to Future to operate the stores.
  6. RIL also offered all the 30,000 employees of Future Retail jobs.
  7. Amazon has argued that Future violated the terms of a 2019 deal the companies signed when the U.S. e-commerce giant invested $200 million in a Future Group unit. Amazon’s position has been backed by a Singapore arbitrator.
  8. In August 2020, Future proposed to sell its retail, wholesale and logistics arms that included businesses, including Fashion at Big Bazaar, Koryo, Foodhall and Easyday, to Reliance for Rs 24,713 crore.
  9. Amazon has been contesting the sale of Future Group’s retail assets to Mr Ambani’s Reliance group. The case is currently before the Supreme Court.
  10. Amazon’s public outcry comes even though on March 3, it offered to hold talks. The ongoing talks have raised hopes that the dispute could be resolved.

 

With Newspaper Ads, Amazon Steps Up Battle With Reliance: 10 Points
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