New Delhi: Amazon.com Inc has attacked the two Indian Retailers whom they have a dispute with, via newspaper ads they have accused them of fraud, on Tuesday after Reliance Industries suddenly took over many of Future Retail stores.
Amazon has been contesting the plan of $3.4 billion sale of Future Group’s retail assets to Reliance since 2020. The case is currently before the Indian Supreme Court.
Reliance began taking over the prized real estate with utmost stealth on February 25. They started doing so, when Reliance staff showed up at many of Future biggest stores to assume control, sources have told Reuters.
The ad was headlined as, “PUBLIC NOTICE” in the leading Indian Newspapers on Tuesday. Amazon said: “These actions have been done in a clandestine manner by playing a fraud on the constitutional courts in India.”
Future and Reliance did not immediately respond to a request for comment.
This public outcry comes from Amazon, even tough it offered to hold talks. The ongoing talks have given hope of resolving the disputes.
In filings this month, Future has said, “It could not pay rent at many outlets given its distressed financial situation and that Reliance, which had taken over many of its leases, had issued it with termination notices.”
Amazon is concerned over Reliance is continuing to take over Future stores even as the talks continue, according to source with direct knowledge of the matter who was not authorized to speak to media and declined to be identified.
The newspaper ads were out with an aim of alerting all stakeholders, including Future’s lenders, that the transfer of assets to Reliance is legally prohibited, the source added.
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