Companies

Deal with Reliance Industries: Won’t pay compensation, Future Group tells Amazon

Forum Gandhi Mumbai | Updated on January 04, 2021 Published on January 04, 2021

Kishore Biyani, founder and CEO of Future Group

Future Coupons didn’t breach any clause, says group

Armed with a High Court order, the Future Group has told Amazon that it is not liable to pay any compensation as there has been no breach of contract.

In a letter addressed to the American e-commerce giant, Future said it has not breached any contract clauses that were signed between Future Coupons (FCPL) and Amazon in 2019.

“We deny that we have acted contrary to and reneged on contractual obligations for personal gain or benefit, as alleged or at all. Such assertions are wholly unsubstantiated,” it said. A copy of the letter was reviewed by BusinessLine.

The letter, written to Amazon on December 31, was signed by Kishore Biyani and other promoters of the Future Group, Future Corporate Resources Private Limited, and FCPL.

Slump sale

The Future group and Amazon have been at loggerheads ever since the former announced a ₹24,000-crore slump sale of assets to the Mukesh Ambani-owned Reliance Industries. Amazon had alleged that Future Retail, the retail arm of Future Group, had breached a contract by signing a deal with RIL and hence owed damages.

Earlier, during the hearing in the Delhi High Court, Harish Salve, Senior counsel who appeared on behalf of FRL, had said if there was a breach of contract, Biyani of FCPL owed damages, and not FRL.

Now, FCPL has said: “We deny that there has been any Event of Default, as alleged or at all, and that we are liable for damages or liquidated damages.”

Promoters’ stance

The company’s promoters explained that between March and August, 2020, post the downfall of its stock prices and the impact of the Covid-19 pandemic, FCPL had asked Amazon for financial assistance but no help was forthcoming.

In April, the promoters of FRL had to pledge more shares owing to the falling stock prices. “All your actions lacked good faith. Except for offering lip service and perfunctorily attempting to show your concern, there were no serious or genuine efforts made by you,” Future said.

Queries sent to Amazon remained unanswered.

 

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Published on January 04, 2021
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