NEW DELHI: In a fresh attack on Future Retail Ltd (FRL), US retail giant Amazon has accused FRL independent directors of deliberately overlooking irregularities committed by Future Group and the promoter family.
In a letter written to the independent directors on May 19, the US e-commerce firm said the independent directors deliberately ignored several red flags raised by it and failed to acknowledge the existence of those issues.
“You, as independent directors of FRL, failed to discharge even your primary function to act as gatekeepers and custodians for inter alia the public shareholders of FRL,” the letter reads. The letter further says that independent directors have failed to take any actions to prevent the fraud, and rather aided and abetted FRL to violate the binding injunctions and orders of courts.
The letter lists a number of alleged frauds committed and false promises made to lenders by FRL and its promoter Biyanis. Amazon claims in the letter the narrative spread by FRL that it allowed taking over of its 835 retail stores due to FRL’s failure to pay huge rent is false and sham. On February 26 this year, RIL took over the stores on grounds that FRL failed to meet retail obligations on the same.
Amazon insinuates that if FRL could on February 18 pay $14 million as interest to its bondholders, it could very well have paid the rent of the stores. It has termed the ‘purported handover of retail assets of FRL (to Reliance) as an intentional fraudulent action in furtherance of the stratagem to alienate the retail stores, without following the rule of law.’
It has asked the independent directors to cease acting for the benefit of the promoters and act in accordance with the statutory duties and obligations to protect the interest of FRL, its creditors, shareholders, employees and investors.