NEW DELHI: E-commerce platform Amazon has written a fresh letter to the promoters of Future Retail Ltd (FRL) asking them not to go ahead with the sale of the group’s supply chain and logistics businesses to Reliance Industries, and abide by the emergency arbitration order passed by the Singapore International Arbitration Centre (SIAC).
The e-commerce platform in the letter addressed to the promoters’ family has reiterated that the transfer of the supply chain and logistics businesses was in violation of Amazon’s rights under the agreement it had entered with Future group in August 2020. It said sale of Future Retail assets to Reliance Industries has also been rejected by the Singapore arbitration court.
In a strongly worded letter Amazon has said despite Reliance Industries calling off the Rs 24,000 crore deal to acquire FRL, the Future group is now trying to enter into a fresh commercial transaction for sale of its supply chain and logistics businesses, which are ancillary and supplementary to the operations of its retail stores to the same entity (Reliance Industries), which has purportedly forcefully taken over the retail stores, which contributed 55% to 65% of the retail revenue operations of FRL.
Amazon says the proposed transaction is aimed at further aiding the plan of handing over the retail stores lock, stock, and barrel.