The Confederation of All India Traders said in a statement that the division bench of Delhi High Court has directed the Competition Commission of India (CII) to revoke the Amazon-Future Coupons deal’s approval on November 16.
The decision comes in the wake of CAIT filing a Public Interest Litigation (PIL) against the e-commerce giant regarding the investment deal struck between Amazon and Future Coupons Private Limited (FCPL), which was given affirmation by the CII. According to the traders’ body, the PIL filed against the Jeff Bezos-led company was to protect the likes of 6000 traders who had business ties with Future Retail Limited (FRL), fostering a flow of Rs.10,000 crore worth of assets.
https://twitter.com/CAITIndia/status/1460504382366093317
The CAIT appealed to the trade association working under the aegis of the Ministry of Corporate Affairs, rebuking the nod given by the statutory body citing that Amazon’s claim of control over Future Retail is illegal and violates the Competition Act, 2002.
Last year, FRL announced a deal of Rs.24,713 crores, selling its retail and wholesale business to Reliance Industries Limited Subsidiary, Reliance Retail. However, this deal is being challenged by the US-based e-commerce company on the grounds of the shares owned by Amazon in FCPL, which amounts to 49%. The FCPL is the owner of a 7.3% stake in FRL. The company has vetoed the decision taken by FRL.
Recently, Independent directors of FRL, too, appealed to the CCI to consider revoking the approval given to Amazon’s 2019 deal that made the company the rightful owner of 49% stakes in Future Coupons Private Limited. The traders’ body and the independent directors have accused Amazon of acquiring the approval of CCI by providing false information to the statutory body.
According to the directors’ appeal to CCI, the Future Group is on the brink of going bankrupt, which makes the jobs of 50,000 employees and roughly Rs.30,000 crore worth of bank loans vulnerable to damage.
Due to the tussle between the companies, it was recently reported that the CCI will organize a meeting with FCPL and Amazon regarding the matter on January 4, 2022. In addition, the CAIT filing an appeal has resulted in Delhi High Court asking the CCI to look into the matter and submit a report in two weeks’ time.
Read all the Latest Business News here
Comments
0 comment