NEW DELHI: The Amazon-Future Retail fight has entered the next round with Amazon now alleging management of Future Retail to siphon off Rs 7,000 crore. Amazon made the allegation in a letter written on November 24, 2021 to the independent directors and audit committee of Future Retail.
The US-based e-commerce company also sent a copy of the letter to the Ministry of Commercial Affairs, the Governor of the Reserve Bank of India (RBI), the Securities Exchange Board of India (SEBI), the Indian Commission. competition (CCI) and the National Financial Information Authority (NFRA).
According to sources close to the development, Amazon alleged that Future Retail, instead of paying off its debts, chose to embezzle Rs 7,000 crore through several companies in the Future group. According to Amazon’s allegations, Future Retail’s debt increased significantly between February and March 2020. Future Retail, reportedly failed to explain the reasons for the company’s significant increase in debt, at the committee’s request audit.
The letter also claimed that during the same period (when FRL witnessed a significant increase in its indebtedness), the company entered into numerous transactions with related parties and even made advance payments to suppliers.
Amazon tried to prevent Future Group from selling Future Retail to Reliance Retail under a Rs 24,000 crore deal. He had moved the Singapore International Arbitration Center (SIAC) against the agreement and the international arbitration tribunal had suspended the agreement for the time being.