Amazon has filed a case against Future Group at the Singapore International Arbitrage Center over the Reliance-Future deal. Two people associated with this case have given this information to Bloomberg Quint. The US e-commerce company has sent a legal notice to its India-based partner Future Group alleging that Future Group has violated the terms of the contract by dealing with Reliance.
Let us know that in August, a deal of Rs 27,513 crore was signed between Reliance Retail and Kishore Biyani-led Future Group, a subsidiary of Mukesh Ambani’s Reliance Industries Ltd. Regarding the same deal, Amazon alleges that Future Group violated the rules of contract with the company.
Future Group has refused to give a statement on this. At the same time, Amazon has told Bloomberg Quint that the company has taken steps to implement the contract rules. Since the matter has gone to court, we cannot share the information related to it.
In August, Future Group signed a deal to sell its retail, wholesale, logistics and warehouse assets to Reliance. At the same time last year, Amazon also invested in Future Group. Amazon bought a 49% stake in Future Coupon.
Amazon was given a call option
Under the Share Holder Agreement, Amazon was given a call option in which the company had the option to buy the promoter shareholding of Future Retail in whole or part of it. This could have been done between the third and tenth years.
Speaking to Bloomberg Quint, corporate lawyer Murali Neelakantan said that it is quite shocking why it took so long for Amazon to send a legal notice and start the legal process.
Murali Neelakantan said When Future Group of Companies decided to do this deal with Reliance at the board meeting, I thought that something like this would happen. It is likely that Amazon will know about restructuring.
Anand Desai, managing partner of DSK Legal, says that if Amazon has a contractual right and even if Amazon has no problem with restructuring, then it should have no objection. It cannot be done verbally.
Neelakantan says that the way Amazon has started legal action, it seems that Amazon wants to get out of this deal and they will settle the case.
