Amazon writes to FRL directors; reiterated willingness to assist the retailer

In its latest letter dated January 19, 2022, Amazon said it has learned from certain media sources that FRL is proposing to sell its small format stores, which include the ‘Easyday’ and ‘Heritage Fresh’ brands.

“Please note that any sale of the small format store without obtaining Amazon’s consent would be a violation of the injunction that FRL and the directors of FRL, including independent directors of FRL, continue to act and are binding on,” the letter, a copy of which was published by PTI had seen.

Amazon stressed that it is “more than willing” to seek effective solutions to help FRL.

“Amazon reiterates that FRL is bound by valid and existing injunctions issued by the Arbitral Tribunal, and enforced by Indian Courts. is prohibited from taking any step, directly or indirectly, for consent,” it said.

Amazon and FRL did not respond to queries seeking comment.

Future and Amazon have been locked in a bitter legal tussle after US e-commerce giant Future Group dragged Future Group to arbitration at the Singapore International Arbitration Center (SIAC) in October 2020, arguing that FRL had struck a deal. had breached their contract by entering. Billionaire Mukesh Ambani’s sale of assets to Reliance Retail on the ground of recession 24,713 crores.

Earlier this month, FRL had said that it had missed the due date of payment of 3,494.56 crore to banks and lenders as it could not sell assets due to its ongoing litigation with Amazon affecting its monetization plans.

Notably, in December, the Competition Commission of India (CCI) suspended the 2019 approval for Amazon’s deal to acquire 49 per cent stake in FRL’s promoter Future Coupons Pvt Ltd (FCPL) and also imposed a fine . 202 crore on the e-commerce major.

The CCI order has been challenged by Amazon before the National Company Law Appellate Tribunal (NCLAT), which has issued notices to the Fair Trade Regulator and FCPL.

The NCLAT has directed to list the matter for next hearing on February 2.

In the past too, Amazon has written to independent directors of FRL on several occasions on the issue.

Amazon said in the latest letter that it has consistently emphasized its willingness to assist FRLs before arbitral tribunals and Indian courts.

“We reiterate our willingness and ability to assist FRL in addressing any financial concerns of FRL, within the framework of the agreements, including the resolution proposed in the term sheet between Samara Capital and FRL, considering an infusion went. 7,000 crore in FRL,” it added.