Amazon accuses Future Retail, Reliance of 'fraud' in newspaper ads
Amazon.com Inc has gone on the attack in
its bitter dispute with two Indian retailers, accusing them of fraud in Indian
newspaper ads on Tuesday after Reliance
Industries suddenly took over many of Future Retail stores.
Amazon has been contesting the planned $3.4 billion sale of Future
Group's retail assets to Reliance, first announced in 2020, and the case is
currently before the Indian Supreme Court.
Reliance, India's biggest conglomerate and retailer run by the
country's richest man, began taking over the prized real estate with utmost
stealth on Feb.25 when its staff showed up at many of Future biggest stores to
assume control, sources have told Reuters.
In ads headlined "PUBLIC NOTICE" in leading Indian
newspapers on Tuesday, Amazon said: "these actions have been done in a
clandestine manner by playing a fraud on the constitutional courts in
India."
Future and Reliance did not immediately respond to a request for
comment.
Amazon's public outcry comes even though on March 3 it offered to
hold talks. The ongoing talks have raised hopes the dispute could be resolved.
Future has said in filings this month that it could not pay rent at many
outlets given its distressed financial situation and that Reliance, which had
taken over many of its leases, had issued it with termination notices.
Amazon is concerned that Reliance is continuing to take over
Future stores even as the talks continue, according to a source with direct
knowledge of the matter who was not authorised to speak to media and declined
to be identified.
The newspaper ads were aimed at alerting all stakeholders,
including Future's lenders, that the transfer of assets to Reliance is legally
prohibited, the source added.
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