Amazon is now fighting a legal battle with FRL to stop the Kishore Biyani-led retailer's $3.4 billion deal with RIL
US e-commerce giant Amazon has written to Ajay Tyagi, chairman of market regulator Securities and Exchange Board of India (Sebi), and other top executives, to withdraw its conditional approval granted to Future Retail Limited (FRL) related to the $3.4-billion merger deal between Future Group and Reliance. The letter has also been sent to other top officials at stock exchanges such as BSE Limited and the National Stock Exchange of India Limited (NSE).
In Aug 2019, Amazon acquired a 49 percent stake in Future Coupons, the promoter entity of Future Retail, for about Rs 1,500 crore. Amazon is now fighting a legal battle with FRL to stop the Kishore Biyani-led retailer’s $3.4 billion deal with Reliance Industries Limited (RIL).
Amazon has requested Sebi and the stock exchanges to act in aid of the binding injunctions operating against FRL, FCPL (Future Coupons Pvt Ltd), and the Biryanis, in terms of the EA Order and the Order on Vacate Application and recall the Observation Letters forthwith.
“We refer to our earlier correspondence including the October 30, 2021 Letter. We wish to reiterate that the EA Order was passed by the Emergency Arbitrator restraining FRL, FCPL and the Biyanis from taking any steps in relation to, in furtherance or in aid of, the Impugned Transaction,” said Amazon’s letter dated November 24 and seen by Business Standard.
Future Group and Amazon didn’t respond to the query related to this issue.
In the letter, Amazon said it reiterates that FRL precipitated the Observation Letters from the SEBI and the Indian Stock Exchanges in violation of the binding directions contained in the EA Order. Consequently, it said the Observation Letters are in violation of the EA Order, have no legal basis and constitute a nullity.
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