Amazon Accuses Future Retail, Reliance of ‘Fraud’ in Newspaper Ads

Synopsis – As per Amazon, they have been contesting in the Supreme Court of India since 2020, over the planned $3.4 billion sales of Future Group’s retail assets to Reliance.

On Tuesday one of the biggest shopping platforms Amazon published an advertisement in the Economic Times, accusing Future Retail (FRL) and Reliance Industries as the latter committed fraud by overtaking some retail stores of FRL.

Amazon published a public notice in which they mentioned the fraud done by both companies FRL and Reliance. As per Amazon, they have been contesting in the Supreme Court of India since 2020, over the planned $3.4 billion sales of Future Group’s retail assets to Reliance. Its been more than 2 years now that Amazon and FRL are locked in a protracted legal battle in Indian courts along with the International Arbitration Center in Singapore.

Reliance is one of the biggest companies in the world and is run by Mukesh Ambani. The company began taking over the prized real estate on 25 February and it came into notice when its staff started to appear in many of Future biggest stores in order to assume control. Amazon in the public notice stated, 

“These actions have been done in a clandestine manner by playing a fraud on the constitutional courts in India, the arbitral tribunal and Indian statutory authorities/agency,” They also added that the actions done by FRL and RIL were, “done in a clandestine manner by playing a fraud on the constitutional courts in India.” 

Regarding the accusations, none of the companies Future Retail Store or Reliance Industries responded. According to the source, Reliance is still in the process of taking over Future Retail even after the ongoing dispute. The public notice issued by Amazon was also added. 

“FRL and its promoters have consistently acted in violation of the order passed by the emergency arbitrator and reaffirmed by the Arbitral Tribunal. It has now come to light that FRL and its promoters have been attempting to remove the substratum of the dispute by purportedly transferring and alienating FRL’s assets comprising the retail stores in the favour of the MDA Group.” 

It is clear that Amazon is going on with numerous legal issues with Future Retail and without clearing them, Future Retail cannot move further with any other company. 

As per the notice, “Amazon hereby puts all persons concerned to notice that any attempt by FRL and its promoters to transfer/dispose/alienate any of its retail assets is in violation of binding orders of the Arbitral Tribunal, which operate as orders of an Indian court and any party assisting or cooperating in such fraudulent and contumacious actions will be liable for civil and criminal consequences under the law.”