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'Future Retail management siphoned off Rs 7000 crore', alleges Amazon

The Amazon-Future Retail fight has entered the next round with Amazon now alleging the management of Future Retail of siphoning off Rs 7,000 crore.

Published: 27th November 2021 11:02 AM  |   Last Updated: 27th November 2021 11:02 AM   |  A+A-

Amazon

Amazon (Photo | AP)

By Express News Service

NEW DELHI:  The Amazon-Future Retail fight has entered the next round with Amazon now alleging the management of Future Retail of siphoning off Rs 7,000 crore. Amazon has made this allegation in a letter written on 24th November, 2021 to the independent directors and audit committee of Future Retail.

The US headquartered e-commerce company has also sent a copy of the letter to the Ministry of Corporate Affairs, governor of the Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Competition Commission of India (CCI) and the National Financial Reporting Authority (NFRA).

According to sources close to the development, Amazon has alleged that Future Retail instead of servicing its debt obligations chose to divert Rs 7,000 crore through several Future group companies. According to allegations by Amazon, debt of Future Retail jumped significantly in the February - March 2020 period. Future Retail, allegedly failed to explain the reasons for significant increase in debt of the company, when asked by the audit committee.

The letter had also alleged that during the same time (when FRL witnessed significant jump in debt), the company entered into many related-party transactions, and even made advance payments to suppliers.

Amazon has been trying to stop Future group from selling Future Retail to Reliance Retail in a Rs 24,000-crore deal. It had moved Singapore International Arbitration Centre (SIAC) against the deal and the international arbitration court had put a hold on the deal for now.



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