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What is the issue between Future Retail and Amazon?
In August 2020, when Future Retail inked a Rs 24,713 crore deal to sell its retail, wholesale, logistics and warehousing units to Reliance Retail, Amazon claimed the deal violated the “contractual rights” it had with Future Coupons.
What is the dispute between Future Group and Amazon?
Amazon has objected to a deal between Future Retail and Reliance Retail, citing violation of an agreement between the American e-commerce giant and Future group. Amazon,which has a minority stake in Future Retail, had earlier tried to bring in strategic investors to help Future Retail with more equity funding.
Why did Amazon Sue Future Group?
On Saturday (Aug. 28), Future fired back with its own lawsuit against Amazon, seeking to get the court to approve its deal with Reliance. Amazon and Future have been feuding for months over the sale, with Amazon saying Future violated contracts by deciding to sell its retail operation to Reliance.
Why did Amazon send legal notice to future group over reliance deal?
Despite Amazon being first approached for investment, Amazon sent a legal notice to Future Group over the Reliance deal. Amazon said that it has the first right to pick up a stake in Future Retail because of its stake in Future Coupons.
What is the Amazon-future case all about?
Amazon argued that Biyani’s asset sale to Reliance Retail is a breach of a 2019 agreement between Amazon and Future. The SIAC ruled in favour of Amazon and put the Reliance-Future deal on hold.
Did future group break contract with Amazon by selling its assets?
The deal also required Future Group to inform Amazon before entering into any sale agreement with third parties. On its part, the Future Group has said that it had not sold any stake in the company, and was merely selling its assets and had therefore not violated any terms of the contract.
Is future retail backing down on Amazon deal with Reliance Retail?
Future Group and Reliance Retail aren’t backing down. Future Retail, during the hearing, reportedly argued that its deal didn’t breach any contact since Amazon’s deal is with Future Coupons, a separate entity. It argued that the decision was taken by the board of Future Retail, and not just its promoters.