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Future Retail’s independent directors have written to the Competition Commission of India to cancel the approval for the 2019 deal between Amazon and Future Coupons on the grounds that Amazon had “concealed facts” at the time of seeking approval for its investment.
This deal in which Amazon had invested ₹1,431 crore in Future Coupons Private Limited is at the centre of the ongoing dispute between Amazon and Future Retail.
They claimed in the letter, Amazon had concealed facts, ‘misrepresented and falsely represented’ to the Commission and obtained its approval on the basis that it was investing in the business of FCPL and not on the basis that it was acquiring rights over FRL in preference to all the shareholders, which it has claimed with success in the arbitral tribunal now.
The Commission should revoke the approval granted to Amazon for its investment in FCPL immediately, they urged.
The directors explained that “Future Retail is on the brink of bankruptcy” and any delay would jeopardise the livelihood of 50,000 employees and ₹30,000 crore of bank debt.
Also, 6,000 SMEs would become insolvent and investment of lakhs of public shareholders destroyed, they said.
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