MUMBAI: The Future-Amazon dispute has now reached the RBI, with the US-based e-commerce company requesting the central bank to run a forensic audit of Future Retail (FRL) for the past three fiscal years for allegedly committing fraud in collusion with the Reliance group.
The nub of the letter’s allegations are that FRL implemented a stratagem to transfer 835 of its retail stores to Reliance Retail despite an injunction from a Singapore Emergency Arbitrator against any alienation of its assets and before the NCLT approving the transfer of such assets to the oil to telecom behemoth. An Arbitral Tribunal had upheld the EA’s order in favour of Amazon.
Through this stratagem FRL allegedly committed fraud against Courts, Tribunals, lenders and the public. The lenders, Amazon states, had under a Framework Agreement provided the company with facilities relying upon its FY21 Annual Report which cited it having enough financial resources to pay lease rentals.
However, the letter adds that before the Framework Agreement with banks, FRL entered into sub- leasing arrangements with Reliance which allegedly contradicts its statements in the Annual Report on its financial strength.
“The stratagem to alienate the retail stores grossly undervalues the retail stores and moreover falls under acts amounting to wrongful trading to defraud creditors,” the letter states. “Additionally, the Promoters, KMPs and directors of FRL are liable for terms of imprisonment under various provisions of law including the Companies Act and action under Wilful Defaulter Circular and RBI Fraud Circular.” Future Group and RIL spokespersons were not immediately available for comment.