New Delhi: The Competition Commission has issued him a show cause notice. heroine According to sources, clarification was sought from the e-commerce major regarding a deal with the Future Group firm approved by the watchdog in 2019.
The notice has been issued following a complaint filed by Future Group, which is locked in a bitter legal battle with Amazon over an earlier proposed Rs 24,713 crore deal. Reliance Industries.
“We are receiving a show cause notice from CCI based on a complaint filed by Future as a part of the ongoing dispute. We are committed to complying with the laws of India and will extend full cooperation to CCI on this matter. Amazon a spokesman said on Thursday.
The spokesperson expressed confidence that the company would be able to address the concerns of CCI.
“While our dispute with Future is in pending litigation, and we are also bound by confidentiality obligations, we are unable to comment on the merits or essence of any allegations at this stage,” the spokesperson said.
There was no immediate comment from Future Group.
Future Group on Thursday handed over a copy of the CCI notice to Amazon to the Supreme Court, which is hearing a petition related to the ongoing dispute by Amazon.
In November 2019, CCI approved Amazon to acquire 49 per cent stake in Future Coupons Pvt Ltd (FCL). is a shareholder in FCL Future Retail Ltd.
Sources said the CCI had sent a notice to Amazon on June 4. The notice pertains to Amazon’s submissions seeking approval for the FCL deal.
Transactions above a certain limit require approval from the CCI. The watchdog has broad powers, including revoking its approval for any transaction, if it is found at any time that the information provided by the acquirer was incorrect.
In the notice, CCI has accused Amazon of concealing its strategic interest in Future Retail and such interest was not previously disclosed to the regulator.
According to the notice, apart from non-disclosures, false and false representations have also been made in respect of the 2019 transactions, a copy of which was seen by PTI.
“… this show cause notice is being issued to you to explain why you will not be found – failed to give notice in respect of FRL SHA (Future Retail Limited Shareholding Agreement) and misrepresented and ( False information and suppressed/ suppressed material facts in contravention of the said provisions of the Competition) Act,” it said.
In August 2019, Amazon had agreed to buy 49 per cent of FCL (which owns 7.3 per cent equity in BSE-listed Future Retail Ltd through convertible warrants), one of Future’s unlisted firms, whose The latter had the right to buy into the major Future Retail. Duration of three to 10 years.
a year later, Reliance Retail Ventures Limited It had tied up with Future Group for acquisition of retail and wholesale business and logistics and warehousing business for Rs 24,713 crore.
Amazon dragged Future Group into arbitration at the Singapore International Arbitration Center (SIAC), arguing that the 2019 deal prevents Future Retail Ltd from selling its business to rivals. In October last year, an interim award was passed by the Emergency Arbitrator (EA) in favor of the US-e-commerce major.
EA prohibits Future Retail from taking any steps to secure any funding from a restricted party, disposing of or weighting its assets or issuing any securities. Amazon and Future Group have also filed lawsuits on the issue in Indian courts, including the Supreme Court.
SIAC has completed its hearing on the petition filed by Amazon in this matter and is likely to deliver its verdict in a month.
The Future Group-Reliance deal was initially expected to close by the end of March. However, in April, Reliance Industries said it was extending the “long stop date” deadline from March 31, 2021 to September 30, 2021.
The deal has got approval from regulators like CCI. Myself And the exchange, and the arrangement plan is now awaiting approval from NCLT and shareholders.
The notice has been issued following a complaint filed by Future Group, which is locked in a bitter legal battle with Amazon over an earlier proposed Rs 24,713 crore deal. Reliance Industries.
“We are receiving a show cause notice from CCI based on a complaint filed by Future as a part of the ongoing dispute. We are committed to complying with the laws of India and will extend full cooperation to CCI on this matter. Amazon a spokesman said on Thursday.
The spokesperson expressed confidence that the company would be able to address the concerns of CCI.
“While our dispute with Future is in pending litigation, and we are also bound by confidentiality obligations, we are unable to comment on the merits or essence of any allegations at this stage,” the spokesperson said.
There was no immediate comment from Future Group.
Future Group on Thursday handed over a copy of the CCI notice to Amazon to the Supreme Court, which is hearing a petition related to the ongoing dispute by Amazon.
In November 2019, CCI approved Amazon to acquire 49 per cent stake in Future Coupons Pvt Ltd (FCL). is a shareholder in FCL Future Retail Ltd.
Sources said the CCI had sent a notice to Amazon on June 4. The notice pertains to Amazon’s submissions seeking approval for the FCL deal.
Transactions above a certain limit require approval from the CCI. The watchdog has broad powers, including revoking its approval for any transaction, if it is found at any time that the information provided by the acquirer was incorrect.
In the notice, CCI has accused Amazon of concealing its strategic interest in Future Retail and such interest was not previously disclosed to the regulator.
According to the notice, apart from non-disclosures, false and false representations have also been made in respect of the 2019 transactions, a copy of which was seen by PTI.
“… this show cause notice is being issued to you to explain why you will not be found – failed to give notice in respect of FRL SHA (Future Retail Limited Shareholding Agreement) and misrepresented and ( False information and suppressed/ suppressed material facts in contravention of the said provisions of the Competition) Act,” it said.
In August 2019, Amazon had agreed to buy 49 per cent of FCL (which owns 7.3 per cent equity in BSE-listed Future Retail Ltd through convertible warrants), one of Future’s unlisted firms, whose The latter had the right to buy into the major Future Retail. Duration of three to 10 years.
a year later, Reliance Retail Ventures Limited It had tied up with Future Group for acquisition of retail and wholesale business and logistics and warehousing business for Rs 24,713 crore.
Amazon dragged Future Group into arbitration at the Singapore International Arbitration Center (SIAC), arguing that the 2019 deal prevents Future Retail Ltd from selling its business to rivals. In October last year, an interim award was passed by the Emergency Arbitrator (EA) in favor of the US-e-commerce major.
EA prohibits Future Retail from taking any steps to secure any funding from a restricted party, disposing of or weighting its assets or issuing any securities. Amazon and Future Group have also filed lawsuits on the issue in Indian courts, including the Supreme Court.
SIAC has completed its hearing on the petition filed by Amazon in this matter and is likely to deliver its verdict in a month.
The Future Group-Reliance deal was initially expected to close by the end of March. However, in April, Reliance Industries said it was extending the “long stop date” deadline from March 31, 2021 to September 30, 2021.
The deal has got approval from regulators like CCI. Myself And the exchange, and the arrangement plan is now awaiting approval from NCLT and shareholders.
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