New Delhi: The tussle between the American e-commerce giant and Indian companies has intensified on Tuesday. Amazon.com gave advertisements in leading newspapers, alleging Reliance Industries and Future retail group of doing fraud. Business Today magazine printed the report quoting news agency Reuters.
Let’s understand the issue of the companies in detail.
Amazon challenges Future group and Reliance Industries’ deal
The issue started when Kishore Briyani-led Future Group announced to sell its wholesale and retail business along with its logistics and warehouse verticals to Reliance Retail Ventures Limited (Limited) in 2020. However, Amazon defied the decision and has been protesting against it ever since. Currently, the matter has reached the Supreme Court.
Amazon flags Reliance Industries’ take over of Future Retail stores
Amid the matter is underway in Supreme Court, Mukesh Ambani’s company started taking over the stores of Future Retails from February 25. This is the main concern of Amazon, according to the media reports. It is reported that Amazon, on March 3, asked for talk to resolve the issue soon. It was expected that the companies are on the same track to end the issue.
However, the advertisement is likely to further deepen the tussle as Amazon is not happy with the takeover.
What does Future Group say?
In its regulatory filing on the acquisition by Reliance Group, Future Group said it could not pay the rent of its stores due to its weak financial condition. Notably, it had taken the stores on the sublease from Reliance Industries. As the Future Group was not able to pay the rent, Reliance issued the termination notice and started taking over back its stores.
