Amazon plans to file criminal case against India's Future over store transfers -sources

Future Enterprises

02/03/2022 17:26

* Amazon set to esclatate legal fight with Future -sources
    * Amazon irked by Reliance taking over Future stores
-sources
    * U.S. group plans to file criminal lawsuit in New Delhi

    By Aditya Kalra
    NEW DELHI, March 2 (Reuters) - Amazon.com Inc  AMZN.O  plans
to initiate criminal court proceedings this week against its
Indian partner Future Retail  FRTL.NS  for allowing the transfer
of assets to a major rival despite a legal prohibition, three
sources with direct knowledge of the matter told Reuters.
    For more than a year, Amazon and Future Group have been in a
legal stand-off that has stalled Future's $3.4 billion sale of
assets to Reliance Industries  RELI.NS .
    Amazon successfully halted Future's asset sale to rival
Reliance since 2020 by citing violation of certain contracts.
    Future, India's second largest retailer, denies any
wrongdoing. Amazon's position has been backed by a Singapore
arbitrator and Indian courts.  urn:newsml:reuters.com:*:nL1N2TR0JF
    Reuters reported this week that Reliance had started to take
over around 500 of Future's stores, rebranding them as its own
outlets.  urn:newsml:reuters.com:*:nL1N2V209G  urn:newsml:reuters.com:*:nL4N2V31V6
    Reliance had previously transferred leases of some of
Future's flagship supermarkets to its name, but allowed Future
to continue to operate them. Reliance has now begun to take
possession of them after Future failed to make rental payments
to it, sources have said. urn:newsml:reuters.com:*:nL4N2V31V6
    Amazon plans to initiate criminal proceedings against Future
in a New Delhi court, and to urge the court to order an
investigation into the matter, one of the sources, who has
direct knowledge of the plans, said.
    Two other sources said the lawsuit could be filed as early
as this week.
    Future, Amazon and Reliance did not immediately respond to
Reuters' emails seeking comment.
    Amazon will allege that Future concealed information during
legal proceedings and allegedly transferred leases of its stores
to rival Reliance, even though a Singapore arbitrator had halted
any transfer or disposal of assets in the ongoing dispute, the
first source added.
    "This is going to be Amazon's last attempt (to stop the
deal)," said this source. 
    The plan to start criminal court proceedings would mark a
significant escalation in the legal battle between Amazon and
its Indian retail rivals - Future Retail and Reliance, which is
led by Indian billionaire Mukesh Ambani.
    The protracted fight over Future's assets is seen as a
battle for retail supremacy between Reliance and Amazon in
India's booming retail market. urn:newsml:reuters.com:*:nL4N2IB3MD 
    In blocking the Future-Reliance transaction, Amazon has long
argued that Future violated the terms of a 2019 deal in which
the U.S. company invested $200 million in part of the Indian
company. 
    Debt-laden Future has previously said Amazon is incorrectly
interfering in its retail business.

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Explainer:  How Amazon's battle with Reliance for India retail
supremacy became a legal jungle    https://reut.rs/3IoRS6h
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 (Reporting by Aditya Kalra in New Delhi. Editing by Euan Rocha
and Jane Merriman)
 ((aditya.kalra@tr.com; +91-11-49548021; Twitter @adityakalra;))