Amazon.com Inc has asked India’s market regulator to investigate Future Retail Ltd for insider trading, a letter seen by Reuters as it sought to prevent its trading partner from becoming part of Reliance’s empire. Makes efforts.
The US giants are pressurizing the Securities and Exchange Board of India (Sebi) to review Reliance’s August deal to buy retail, logistics and other assets for $ 3.4 billion, including debt from the Future Group.
Amazon argues that it had entered into a 2019 deal with Future, which blocked the retail assets of the Indian conglomerate from being sold to certain parties, including Reliance Industries Ltd, headed by Asia’s richest man Mukesh Ambani.
In an 8 November letter to Sebi, Future Retail revealed the sensitive value of the injunction given by the Singapore arbitrator to block the deal.
Also read HC asks Amazon to respond to Future Retail’s allegations
Indian companies, courts and regulators would have respected the decision made in accordance with the foreign rules of arbitration, and would be a headache for Amazon in India, which is also dealing with antitrust challenges.
The injunction was granted on Sunday 25 October and the media issued a short statement with Amazon stating that it had welcomed the decision.
Reliance said in a stock exchange filing later in the evening that it was informed of the arbitration order and would enforce its rights to complete the deal without future delays.
It is an October 25 filing, which Amazon argues in its 20-page letter, that Ambani’s group was kept privy to the “price sensitive” details of the injunction.
Ambani’s group “was not a party to the arbitration proceedings …” could only get details related to FRL (Future Retail) or its promoters, “the letter said.
A spokesman for the Future Group said in a statement to Reuters that it denied the allegations leveled in the letter and that the news of the injunction was in the public domain since Sunday.
Reliance and Sebi did not respond to requests for comment by Reuters. Amazon declined to comment on the contents of the letter.
Future Retail, which has argued that Amazon’s agreement last year with only a separate Future Group unit, issued a statement to the stock exchange on the morning of 26 October. Stating that it was investigating the arbitration order and was confident that the order would be tested by Indian law.
Also read Future facts hidden, Amazon claims
Future Group, which operates supermarkets and high-end food stores and has more than 1,500 outlets across India, has argued that it has signed a deal to sell retail assets to Reliance as its business is hit by the Kovid-19 epidemic. And it was serious to protect all its stakeholders.
It remains to be seen whether Indian courts and regulators will engage with Amazon or Future Retail. Future Retail has asked a New Delhi court to ban Amazon for contacting Indian regulators to block its deal with Reliance. The trial of the case began on Tuesday.
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