Future Retail guilty of financial irregularities, says Amazon

 Amazon is fighting a legal battle with FRL to stop the Kishore Biyani-led retailer's $3.4 billion deal with Reliance Industries Limited (RIL)

US e-commerce giant Amazon has written to the independent directors of Future Retail Limited (FRL), including Gagan Singh, Ravindra Dhariwal, and Jacob Mathew, and its audit committee, providing data and alleging that there have been significant financial irregularities to the prejudice of public shareholders, banks, creditors, and third-party suppliers. Amazon has said this warrants a thorough and independent examination of all relevant facts and related-party transactions, including of past financial years, by an independent agency.

Separately, Amazon has written to Securities and Exchange Board of India Chairman Ajay Tyagi, seeking the withdrawal of the regulator’s conditional approval granted to FRL related to the merger deal between the Future group and Reliance. The letter has also been sent to top officials of the stock exchanges.

Amazon’s letter to the FRL independent directors, dated November 24, which Business Standard has accessed, states: “Given the nature of disclosure and findings, a careful and detailed examination must be made by statutory authorities/regulators/enforcement agencies also to enquire and investigate into the financial statements, and records, including related-party transactions and discussions in board, and audit committee meetings, in the interest of public shareholders, banks, creditors, and third party suppliers.”