You are here: Home » Companies » News
Business Standard

A promoter entity asked by ED for providing documents for probe: FRL

A promoter entity of the Kishore Biyani's Future Retail has been asked by the ED to provide documents pertaining to the embattled retail giant's 2019 deal with Amazon, the firm said on Wednesday

Future Retail | Enforcement Directorate

Press Trust of India  |  New Delhi 

Future Retail
Photo: Shutterstock

A promoter entity of the Kishore Biyani's Ltd (FRL) has been asked by the (ED) to provide documents pertaining to the embattled retail giant's 2019 deal with Amazon, the firm said on Wednesday.

FRL, however, said it has not received any direction to provide any document.

As regards the Enforcement Directorate, FRL is not in receipt of any directions to provide information and documents in connection with the Enforcement Directorate's investigations, a regulatory filing by FRL, said.

FRL's submission came in response to a clarification sought by BSE over a report that claimed that the ED had sought documents from Future Group on the disputed deal with Amazon for selling 49 per cent stake in Future Coupons Pvt Ltd (FCPL). FCPL is a shareholder in

"It may be noted that no proceedings have been initiated against FRL for such a direction to be reported to stock exchanges. Please also note that without permission of the Enforcement Directorate, we would not be able to share correspondence promoter entity had with them. As and if and when there is any development to report, we shall do so, FRL said.

The development comes days after the independent directors of FRL approached the Competition Commission of India (CCI), urging it to revoke the approval it had given to the Amazon-FCPL deal in 2019, alleging the e-commerce major of making false statements before it.

The Commission should immediately confirm the revocation of the approval granted to Amazon for its investment in FCPL, the letter had said.

CCI would have become wary and forwarded the papers to DEA (Department of Economic Affairs) for examination if the acquisition of controlling rights is allowed under FEMA regulations, they had said adding that Amazon has cleverly prevented CCI from doing this and has taken shelter that its investment in FCPL is under automatic route.

In November 2019, the CCI had given its approval for Amazon to acquire a 49 per cent stake in FCL.

In August last year, Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd had announced the acquisition of the retail and wholesale business, and the logistics and warehousing business of Future Group for Rs 24,713 crore.

Amazon is contesting the deal through its shares in FCPL and had approached Singapore International Arbitration Centre (SIAC). The have also approached Indian courts in this matter.

In October last year, an interim award was passed by the EA (emergency arbitrator) in favour of Amazon that barred FRL from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party.

This was also upheld by SIAC last month and said FRL is a party to the ongoing arbitration between Amazon and Future group in the dispute over sale of its assets to Reliance Retail.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 10 2021. 20:00 IST