Amazon raises objections to Reliance Group's takeover of Future stores

Mumbai: Ahead of a hearing in the Supreme Court, which had given Amazon Inc, Reliance Industries Ltd, and Future Retail Ltd 15 days to negotiate a settlement, the US major on Tuesday raised objections to Future Group's purported move to transfer and alienate its assets to the Mukesh Dhirubhai Ambani (MDA) group.

Amazon, in a public notice, said the transfer of Future Retail Ltd's (FRL) retail assets is being done in a clandestine manner by playing fraud on courts, tribunal and statutory authorities.

This comes in the middle of a protracted litigation that Future and Amazon are facing before the Supreme Court for a proposed Rs.24,713 crore deal between Future and Reliance group.

The issuance of notice may further complicate and prolong the legal battle between the two.

Both Amazon and Future did not offer any comments in this regard. However, people aware of the matter said that "the negotiation before the Supreme Court is not connected to the notice that has been issued. This is merely pointing out in response to actions taken by Future as reported in media "

Reliance has taken over nearly 500 stores operated by Future Group parent firm of hypermarket chain Big Bazaar which is facing an acute financial crisis.

Reliance's takeover began on the night of 25 February. Future which has more than 1,700 outlets, including popular Big Bazaar stores - has been unable to make lease payments for some of its outlets. As a result, Reliance transferred the leases of some stores to its name and sublet them to Future to operate the stores.