new Delhi: US e-commerce giant Amazon Inc plans to initiate criminal proceedings this week against its Indian partner Future Retail for allowing the transfer of assets to Reliance Industries (RIL) despite a legal ban, Reuters quoted sources as saying. reported on Thursday.
A source said the US e-tailer plans to move a New Delhi court and order a court inquiry into the matter. The lawsuit could be filed as early as this week.
Amazon and Future Group have been embroiled in a legal standoff for more than a year that has stalled the sale of the Indian firm’s assets worth $3.4 billion to RIL.
Amazon successfully halted the sale of Future’s assets to rival RIL, citing breaches of certain contracts since 2020.
Amazon’s position has been supported by a Singapore arbitrator and Indian courts. However, Future, India’s second largest retailer, has been denying any wrongdoing.
In a report earlier this week, Reuters noted that RIL had begun acquiring around 500 Future stores while rebranding them as its own outlets.
Mukesh Ambani-led Reliance Industries had earlier transferred leases of some of Future’s major supermarkets to its name, but allowed Future to continue operating them. Sources told the news agency that after Future failed to pay the rent, RIL has now started taking over them.
Future, Amazon and Reliance did not immediately respond to emails seeking comment.
In criminal proceedings, Amazon will allege that Future hid information during a previous court hearing and allegedly transferred its store leases to Reliance, even though a Singapore-based arbitrator has ruled out any transfer or settlement of the assets in the ongoing dispute. have stopped.
“This is going to be Amazon’s last attempt to block the deal,” this source said.
The plan to initiate criminal court proceedings will mark a significant escalation in the legal battle between Amazon and its Indian retail rivals, Future Retail and Reliance.
The battle over Future’s assets is being seen as a battle for retail supremacy between Reliance and Amazon in India’s fast-growing retail market.
Amazon has long argued blocking the Futures-Reliance transaction, arguing that Future violated the terms of a 2019 deal in which the US company invested $200 million in an Indian company’s share. However, the debt-ridden Future had earlier said that Amazon was unfairly interfering in its retail business.