The Supreme Court had given time till March 15 to both the parties to find a solution.
There has been no agreement on how to proceed with negotiations to find an amicable solution to the ongoing dispute between Amazon and Future Group.
Earlier this month, Amazon and Future Group agreed to an out-of-court settlement. The Supreme Court had given time till March 15 to both of them.
On Tuesday, lawyers for Amazon, Future Retail Ltd (FRL) and Future Coupons said negotiations and negotiations for the settlement have stalled without any progress.
Amazon Ads
As a precursor to the disclosure in court, Amazon ran an advertisement in newspapers stating that the actions by Future Group and Reliance Retail “were carried out in a covert manner by fraudulently acting on the constitutional courts in India.” The advertisement was in response to Reliance Retail taking over the lease agreement of stores operated by Future Retail.
lease acquisition
Amazon highlighted that FRL was giving away assets in violation of an earlier order of the Singapore International Arbitration Center (SIAC) and SC.
Recently, Future Group informed the stock exchanges that Reliance has taken lease agreements of over 400 stores and converted Future Retail stores into Reliance Retail stores.
According to sources, the SC questioned the FRL as to how they could have given the store to Reliance when the dispute was being heard. The CJI further asked the FRL why it stopped the arbitration if it wanted a speedy resolution.
Lender’s notice
On Tuesday, lenders to Future Group issued a public notice to secure their interests in the company’s assets as stores changed hands. Future Retail’s top lender Bank of India claimed charges on the company’s assets. The bank said that Future Retail has borrowed from a group classified as senior lenders.
Therefore, Bank of India, representing the lenders, stated that the assets of Future Group are still taken from its lenders, and cautioned the public against dealing with the assets of the company.
“Anyone working with them may be subject to enforcement action by lenders,” it said. The lenders have also written to market regulator Sebi seeking action against Future’s move to surrender the store lease agreement to Reliance as it eroded the value of the company.
Published on
15 March 2022