Wednesday, May 18th, 2022

Future Group shares documents with CCI on Amazon case

Future Retail’s independent directors have disclosed new documents in a letter to the Competition Commission of India (CCI) aimed at bolstering their case against Inc. want.

In a 160-page stock exchange filing on Sunday, the directors reviewed records relating to a 2019 deal between a group entity, Future Coupons, and Amazon, and argued the disclosures made by the US company before the CCI when it sought approval of the deal. So denied Amazon. own internal communication at that time.

Amazon and CCI did not respond to a request for comment on the disclosures on Sunday. The legal dispute between the two companies, centered around Amazon’s deal to invest $200 million in Future Retail Coupons, has become a high-stakes battle that could determine the major player in India’s retail market in the coming years.

Amazon has successfully used the tie-up to block Future’s attempted sale of a $3.4 billion retail asset to Reliance, which the Indian company is banking on to help it sustain its business. According to Sunday’s filing, Future’s directors told CCI. The November 10 letter said that Amazon did not intend to invest in Future Coupons because of its “unique business model and strong growth potential”, as stated when seeking approval.

Rather, an internal email from an Amazon India executive to other senior Amazon executives titled “Future Retail Limited Investments” stated that the US firm “twin-unit investment” structure to invest in Future Retail due to Indian law restrictions. was using”. ,

“The CCI must revoke the approval granted for the investment of Amazon,” the letter from independent directors of Future said. His filing is the latest defense in the legal battle. In July, Reuters exclusively reported that the CCI reviewed a complaint by Future and then accused Amazon of concealment of facts while seeking approval of the 2019 deal, as the watchdog reported on multiple forums legal action taken by Amazon. Compare disclosures.

The company told Reuters at the time that it was confident of addressing the watchdog’s concerns. India’s financial crime-fighting agency has ordered Future – the country’s second largest retailer – to submit documents related to the 2019 Amazon deal as part of an investigation into possible violations of foreign investment laws, Reuters reported last week.