“For ₹ 1,400 Crore, Amazon Has Destroyed ₹ 26,000-Crore Company”: Future Retail
Future Retail told the Supreme Court that “Amazon wanted to destroy us, and it succeeded,” as the bitter and long-running legal battle continues, with the next hearing scheduled for April 4.
After talks between Amazon Inc. and Future Retail Ltd. (FRL) to resolve and come to an out of court settlement failed, Reliance Industries Limited (RIL) took over hundreds of stores of the Kishore Biyani-led group last month on unpaid rents mounting up to ₹ 4,800 crores, the accusing-and-the retort continues.
While Amazon has also accused Future Retail and RIL of “fraud”, Future group said on Thursday, “for ₹ 1,400 crores (worth of the Amazon-Future disputed deal), Amazon has destroyed a ₹ 26,000 crores company. Amazon has been successful in what it wanted to do.”
“We are hanging by a thread. No one wants to do business with us now. When the landlord gives an eviction notice, then what can we do?” added Future Retail, referring to the take over of its stores by RIL.
Have lost control of over 835 stores, running the remaining 374 stores “on a wing and a prayer,” said Future Retail.
Amazon argues that its 2019 deal with a Future unit contained clauses prohibiting the Future group from selling its retail assets to anyone on a “restricted persons” list that included Reliance. The company also objects to Future Retail’s assets being surrendered.
Amazon said the transfer of Future Retail’s assets looks like “Ripley’s Believe It or Not” FRL let go of over 800 shops without any protest.
But Future Retail said it could not pay rents and had to surrender its stores ultimately.
No payments can be made from our accounts as they have been frozen due to NPA classification, said the company.
However, Amazon said, Future’s claims that it is short of money and could not pay lease rental is a strategy and a sham and submitted that the Supreme Court must restrain any alienation of Future assets until the Arbitral Tribunal decides the case.