NEW DELHI: Even as many are calling it a silent coup by Reliance Industries on Amazon in the way it took over Future Retail Stores, Amazon is not going to let go down silently without putting up a fight.
Sources told TNIE that the online retail giant is planning to launch a fresh offensive against Future Retail, if the latter does not accept the ‘exit’ plan offered by it.
Sources say that Amazon might file contempt petition against Future Retail as it committed an ‘illegal Act’ of changing the lease agreement of stores in violation of emergency arbitrator’s award, and did not disclose the change in lease agreement to lenders, shareholders as well as courts.
Reliance Retail had taken over stores of Future group after the latter failed to pay the lease rents. According to sources close to the development, Amazon is looking at possible legal action against Future Retail for changing the lease agreement when the emergency arbitral award had specifically asked for status quo.
The sources also said that it may also try to pin the Kishore Biyani-owned company down for not informing the Supreme Court and High Court about the change in the lease agreement when the courts are hearing cases against those assets.
The e-commerce giant is also likely to harp on the fact that Future Retail did not even inform the shareholders about the change in the lease agreement. “Shareholders should be informed of any steps taken by the company that may impact its revenues,” said sources.
It might also argue in the court that Future Group colluded with Reliance, which is indirectly a party to the ongoing dispute between Amazon and Future. According to sources, Amazon has told the financially distressed Future Retail that it is ready to help it in getting funds required to make repayments to its creditors.
The US-headquartered retail giant has likely assured Future Group that if not itself, it might help raise funds through third party sources to help Future Group tide over the debt crisis. Amazon has been in a legal tussle with Future group after it tried to sell its retail business to Reliance Retail in a 24,000-crore deal.