Amazon has criticized Reliance’s takeover of Future stores as a “fraud” in Indian newspaper ads

NEW DELHI, March 15 (Reuters) – launched an offensive in its bitter dispute with two Indian retailers, accusing them of fraud in Indian newspaper ads on Tuesday after Reliance Industries. (RELI.NS) Suddenly acquired many Future Retail (FRTL.NS) stores.

Amazon is competing in the planned $3.4 billion sale of Future Group’s retail assets to Reliance, which was first announced in 2020, and the case is currently before the Indian Supreme Court.

Sources told Reuters that Reliance, India’s largest conglomerate and retailer run by the country’s richest man, began seizing prized real estate in maximum stealth on February 25 when its employees appeared at several of the largest futures stores to take control. Read more

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In advertisements titled “Public Notice” in major Indian newspapers on Tuesday, Amazon said: “These actions were carried out in a covert manner by manipulating the constitutional courts of India.”

Future and Reliance did not immediately respond to a request for comment.

Amazon’s public outcry comes even though on March 3 it offered to hold talks. The ongoing talks have raised hopes of resolving the dispute. Read more

Future said in filings this month that it cannot pay rent at many outlets due to its troubled financial position and that Reliance, which has acquired several leases, has issued it termination notices.

Amazon is concerned that Reliance will continue to acquire its Future stores even as talks continue, according to a source with direct knowledge of the matter who was not authorized to speak to the media and who declined to be identified.

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The source added that the newspaper’s announcements are meant to alert all stakeholders, including Future lenders, that the transfer of assets to Reliance is prohibited by law.

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(Report) Submitted by Aditya Kalra and Abhirop Roy; Editing by Edwina Gibbs

Our criteria: Thomson Reuters Trust Principles.

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