Amazon sends notice to Future Group promoters to stop transaction with Reliance

Amazon said that the actions are contrary to statements made before courts through pleadings or otherwise

E-commerce major Amazon has sent a notice to Future Group promoters asking them to refrain from entering into any kind of transaction with Reliance Industries group either directly or indirectly, a source aware of the development said on June 7.

The notice follows reports that the Future group is in the midst of negotiations with Mukesh Dhirubhai Ambani (Reliance Industries Limited) Group (MDA Group) for sale of its supply chain and logistics businesses.

Amazon in the notice dated June 6 to Future Group promoters said that the scheme of arrangement between Future Group and Reliance was rejected by the creditors of Future Retail Limited (FRL), but still "FRL has through a fraudulent and convoluted stratagem already handed over as many as 835 retail stores to the MDA Group and now intends to transfer the entire supply chain, warehousing and logistics business by way of the proposed transaction to the MDA Group.

It said that the "proposed transaction is in continuation of a larger fraudulent stratagem to give effect to the impugned transaction by circumventing the binding injunctions contained in the EA (Emergency Arbitrator) order and subsequently re-affirmed by the arbitral tribunal in the tribunal order," the notice said.

Amazon said that the said actions are contrary to statements made before courts through pleadings or otherwise.

"The element of collusion between the Future group and the MDA Group is manifested," the notice said.

It said FRL had claimed that the MDA Group had 'forcefully' taken over the retail stores and its board of directors have taken a "strong objection" to such actions taken by the MDA Group.