MUMBAI/NEW DELHI: Talks between e-commerce giant Amazon, Future Retail and Future Coupons ended without making any headway, lawyers of the companies informed the Supreme Court (SC) on Tuesday. The companies on direction from the SC had a twelve-day window to resolve their 18-month long dispute that has stalled the Rs 24,713 crore deal between Future group and RIL.
With the talks bearing no fruit, Amazon has sought certain interim reliefs from the SC, which will hear their application on Wednesday. One of the reliefs was highlighted in a public notice issued by Amazon against Future Retail (FRL) and its promoters on Tuesday.
The notice warns FRL and its promoters of Amazon initiating criminal and civil litigation against them for what it terms is the transfer of retail assets to RIL in a “clandestine” manner. Citing the Singapore-based emergency arbitrator’s order restraining FRL and its promoters from taking any steps to consummate the deal with RIL or to alienate/dispose /encumber/ transfer FRL’s assets without its written permission, Amazon alleged, “These actions (transfer of FRL assets) have been done in a clandestine manner by playing a fraud on the Constitutional Courts in India, the Arbitral Tribunal and Indian statutory authorities/agencies.”
However, Future group’s counsels informed the court that they have not transferred the stores. A Future group company had on March 9 updated the stock exchanges of “having so far received termination notices for sub-leased properties from Reliance entities in relation to 34 “Central” stores and 78 “Brand Factory” stores of the Company.
FRL, meanwhile, agreed to re-start the arbitration before the Singapore Tribunal, against whose proceedings it had secured a stay from a division bench of the Delhi HC. Amazon had moved the SC to vacate the HC order. Future group and Amazon spokespersons were not available for comment.
In a separate development, senior lenders to FRL led by Bank of India warned in a public notice Tuesday that all their loans were secured by charge over the moveable fixed assets and current assets of FRL. Any dealing with such assets could be subject to clawbacks.