Future Retail independent directors allege Amazon of violating FDI rules: Report

In November 2019, CCI had given its approval for Amazon to acquire a 49 per cent stake in FCPL and FCPL is a shareholder in Future Retail Ltd

In the latest development on the feud between Amazon and Future Retails group, the independent directors of the latter have accused the US ecommerce giant of violating India’s foreign exchange and foreign direct investment (FDI) norms, and also said that the company has ‘illegally’ acquired FRL shares.

In a letter to the stock exchange, the independent directors said that Amazon concealed facts, and made false representations to the Competition Commission of India to seek approval for its investment in Future Coupons, according to a report by The Economic Times.

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The independent directors have requested the CCI to stop Amazon from jeopardising Rs 30,000 crore of debt extended by public sector banks to Future Group.

“Amazon’s acquisition of these strategic rights will be in violation of FEMA FDI rules since any acquisition of shares or rights as a shareholder by a foreign entity in FRL requires prior approval of the government,” the officials stated in the statement.

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In November 2019, the CCI had given its approval for Amazon to acquire a 49 per cent stake in FCPL and FCPL is a shareholder in Future Retail Ltd.

In the letter, which has also been sent to Sebi Chairman, Finance Minister and the Prime Minister of India, the independent directors requested CCI to stop Amazon from “perpetuating its evil non-desirable designs” to make FRL bankrupt.

(With PTI inputs)

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