You are here: Home » Companies » News
Business Standard

Amazon alleges Rs 7,000 cr diverted from Future Retail

The US giant marked a copy of its letter to the finance minister, RBI governor, Sebi and other authorities, seeking an investigation

Topics
Amazon | Future Retail

Saritha Rai & Upmanyu Trivedi | Bloomberg 

big bazaar

com Inc., which is trying to block India’s richest man from taking over a struggling retail chain, fired a fresh salvo by alleging that money from the local firm was possibly diverted to other

Ltd. transfered Rs 7,000 crore ($939 million) in the year ended March 2020 as a capital advance to a company controlled by its founder Kishore Biyani and as payment for goods and services purchased from the related firm, said in a letter seen by Bloomberg also created unusual rental security deposits and made advances to suppliers worth a total Rs 4,300 crore the same year, even as business slumped and it was shutting stores, said.

“Significant amounts may have been diverted from Future Retail,” Amazon said. By unwinding at least part of these transactions, can “immediately partially repay outstanding debt owed to banks and creditors to ensure business continuity and survival,” it added.

The transactions were part of the public disclosures made by the company as part of standard governance practices, Future Retail’s representative said by email, adding that “there is nothing new that is being brought to the notice, except for false speculations being created out of selective excerpts.” A representative for Amazon India declined to comment.

ALSO READ: Future Retail guilty of financial irregularities, says Amazon

The U.S. giant marked a copy of its letter to the finance minister, RBI governor, Sebi and other authorities, seeking an investigation.

A probe would risk delaying the planned takeover of Future Retail by Mukesh Ambani’s Reliance Industries Ltd., making it harder for the tycoon to increase his footprint. Ambani and Amazon are locked in a battle for dominance of the world’s biggest market that’s open to foreign competition, with the tussle playing out in courts in India and abroad, as well as across the country’s regulators.

The letter, dated Nov. 24, comes as India’s antitrust authority is hearing a petition from Future Retail to revoke regulatory approval of a 2019 deal between one of its group and an Amazon unit, saying the American retailer lied to the regulator. Amazon says Future Retail‘s plan to sell its stores to Reliance -- Amazon’s rival -- violates the 2019 partnership contract, while the indebted Indian group says it would collapse if the transaction fails.

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: Fri, November 26 2021. 14:08 IST
RECOMMENDED FOR YOU
.