The Confederation of All India Traders said in a statement that a division bench of the Delhi High Court has directed the Competition Commission of India (CII) to set aside the approval of the Amazon-Future Coupons deal on November 16.
The decision comes in the wake of a Public Interest Litigation (PIL) filed by CAIT against the e-commerce giant in connection with the investment deal between Amazon and Future Coupons Pvt Ltd (FCPL), which was confirmed by CII. According to the traders’ body, the PIL filed against the Jeff Bezos-led company was to protect 6000 traders who had business links with Future Retail Ltd (FRL), leading to inflow of assets worth Rs 10,000 crore.
,@CAITIndia Has filed intervention in the Delhi HC in Amazon-Future Group’s fight to protect 6000 merchants who supplied goods worth Rs 10,000 crore to Future Group. Delhi HC today directed @CCI_India To dispose of the matter within 2 weeks regarding revocation of approval
— Confederation of All India Traders (CAIT) (@CAITIndia) November 16, 2021
CAIT appealed to the trade association working under the aegis of the Ministry of Corporate Affairs, citing the approval granted by the statutory body, holding that Amazon’s claim of control over Future Retail is illegal and violates the Competition Act, 2002. Is.
Last year, FRL announced a deal worth Rs 24,713 crore, selling its retail and wholesale business to Reliance Retail, a subsidiary of Reliance Industries Ltd. However, the deal is being challenged by the US-based e-commerce company on the basis of Amazon-owned shares in the FCPL holding 49%. FCPL owns a 7.3% stake in FRL. The company has vetoed the decision taken by FRL.
Recently, independent directors of FRL, too, appealed to the CCI to consider revoking the approval granted to Amazon’s 2019 deal, which made the company the rightful owner of 49% stake in Future Coupons Pvt Ltd. The merchants’ body and independent directors have accused Amazon of obtaining CCI’s approval by providing false information to the statutory body.
According to the appeal of CCI directors, Future Group is on the verge of bankruptcy, which is likely to result in loss of jobs of 50,000 employees and bank loans of around Rs 30,000 crore.
Due to the tussle between the companies, it was recently reported that CCI will hold a meeting with FCPL and Amazon regarding the matter on January 4, 2022. Furthermore, the filing of an appeal by the CAIT has resulted in the Delhi High Court asking the CCI to do the same. Look into the matter and submit the report in two weeks’ time.
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