US online retailer Amazon.Com Inc has slapped a legal notice on Future Group, alleging that the retailer’s Rs 24,713 crore asset sale to Reliance Industries violated an agreement with the e-commerce giant.
“We have initiated steps to enforce our contractual rights,” a spokesperson for the Seattle-based e-commerce giant said. “As the matter is sub-judice, we can’t provide details.”
Amazon last year bought a 49 per cent stake in one of Future’s unlisted firms, Future Coupons Ltd, with the right to buy into flagship Future Retail after a period between 3 and 10 years. Future Coupons owns a 7.3 per cent stake in Future Retail.
In August this year, Future reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance.
The deal is awaiting regulatory approvals.
A source who is advising Future Group in this matter told PTI that Future Coupons received the notice from Amazon.
The person added that the Kishore Biyani-led group intends to settle this matter amicably, either through mediation or arbitration.
E-mail send to Reliance Industries Ltd (RIL) and Future Group did not solicit any response.
The development comes at a time when Reliance Retail Ventures Ltd – run by India’s richest man Mukesh Ambani – has been on a fund raising spree, bringing in well over Rs 37,700 crore in less than four weeks from global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA.
Reliance Retail’s network spans supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store, JioMart. It has a presence in nearly 7,000 towns, with 640 million footfalls across core categories of grocery, consumer electronics and apparel.
The investments equip Reliance Retail with funds to compete in both offline and online formats. The investments