Future And Amazon Continues To Fight Through Letters

Future and Amazon continues to fight through letters, both written to SEBI regarding FRL-Reliance deal.

The dispute between Future Group and Amazon is not taking name. Now this dispute continues through letters.

Both Amazon and Future Group have written separate letters to market regulator Sebi and have made their own talk about the deal worth Rs 24,713 crore.

The Future Group has written a letter to SEBI urging it to complete the review of the proposed deal at the earliest and issue a no-objection certificate.

At the same time, Amazon has requested to stop the review of the said transaction.

In August this year, Future Group announced a deal to sell its retail, wholesale, logistics and warehouse business to RIL for Rs 24,713 crore.

After this, Amazon has approached the international arbitration court of Singapore regarding this deal.

After this, Future Retail Limited (FRL) of Future Group Company has approached the Delhi High Court.

The High Court upheld Amazon’s right to speak in statutory authority against the Future Group-Reliance retail deal.

However, the court during its hearing indicated that Amazon’s attempt to control the FRL through certain agreements with an unlisted Indian company could violate FEMA’s FDI rules.

Apart from this, the court also allowed the regulators to take further decisions on the deal as per the rules.

The FRL, in its letter dated 23 December, urged SEBI to take a decision on the non-objection certificate at the earliest. The company needs NOC for retail and other business sales.

The FRL says that any delay in this will harm the interests of the company, stakeholders and investors.

The Securities and Exchange Board of India (SEBI) is to issue NOCs after reviewing the plans of the Future Group companies to merge RIL’s Reliance Retail Ventures Ltd and Reliance Retail Fashion Lifestyle Limited.

On the other hand, Amazon has said in a letter to Sebi chairman Ajay Tyagi on December 21 that the Delhi High Court has rejected the FRL’s request to place an order against Amazon.

The court has said that the interim order of SIAC will be subject to Indian law. Based on this, Amazon has requested Sebi not to approve the proposed deal.