Chaini Parwani –
Published On: November 15, 2021 12:59 IST
Independent directors at Big Bazaar parent Future Retail (FRL) have slapped a fresh Salvo at Amazon claiming that the portrayal made by Amazon in the application to the Competition Commission of India (CCI) for the consent of its Future Coupons (FCPL) transactions are “Completely Opposite”.
In the letter sent to CCI on Sunday, the Directors Authored the contents from a letter by Amazon’s Legal Counsel in India to its founder Jeff Bezos, it was indicated that the retailer in the first instance planned to invest in Future Coupons (FCPL) through a Foreign Portfolio Investment Plan.
Later after the Government amended the Foreign Direct Investment Regulations for online marketplaces via Press Note 2 in 2018, the investment structure was modified to Amazon investing in a twin-entity investment structure meaning that Amazon would invest in Future Coupons (FCPL) and further Future Coupons (FCPL) will obtain 9.82% of Future Retail (FRL).
Through Modifications, the Government banned foreign e-commerce marketplaces from selling products from sellers in which they have an equity stake.
In the letter to CCI that is almost a replica of the previous one in which Amazon was held Liable for Violating India’s Foreign Direct Investment (FDI) rules, the directors claimed that while Amazon constituted its Rights as “Investment protection Rights” to the Competition Commission of India (CCI), the Rights obtained by Amazon over Future Retail (FRL) were “Strategic”.
Amazon did not comment on this Allegation and alleged before several Courts that the protective Rights were to protect its investment in Future Coupons (FCPL).
Furthermore, the FRL Directors claimed that the money paid for the FCPL shares has been decided by Amazon on the basis of FRL’s valuation.