For more than a year, Amazon and Future Group have been in a legal stand-off that has stalled Future’s $3.4 billion sale of assets to Reliance Industries
NEW DELHI:
Amazon.com Inc plans to initiate criminal court proceedings this week against its Indian partner Future Retail for allowing the transfer of assets to a major rival despite a legal prohibition, three sources with direct knowledge of the matter told Reuters.
For more than a year, Amazon and Future Group have been in a legal stand-off that has stalled Future’s $3.4 billion sale of assets to Reliance Industries.
Amazon successfully halted Future’s asset sale to rival Reliance since 2020 by citing violation of certain contracts.
Future, India’s second largest retailer, denies any wrongdoing. Amazon’s position has been backed by a Singapore arbitrator and Indian courts. read more
Reuters reported this week that Reliance had started to take over around 500 of Future’s stores, rebranding them as its own outlets. Reliance had previously transferred leases of some of Future’s flagship supermarkets to its name, but allowed Future to continue to operate them. Reliance has now begun to take possession of them after Future failed to make rental payments to it, sources have said. read more
Amazon plans to initiate criminal proceedings against Future in a New Delhi court, and to urge the court to order an investigation into the matter, one of the sources, who has direct knowledge of the plans, said.
Reuters