According to Amazon, its agreement with Future Coons clearly states that it cannot sell its stake to any third party or competitor without its permission.
E-retailer Amazon has put Future in the dock on the charge of breaking the contract. Amazon has said in its complaint at the Singapore International Arbitration Center that in 2019 it had bought the Future indirect stake. But Future has violated the contract in this regard.
Amazon said, we did not get approval from selling stake
Amazon has stated that its permission was not taken prior to the deal between Future and Reliance, while the earlier deal with Future (under which Amazon bought an indirect stake in Future Group through Future Coupons) was that before selling the stake His permission is necessary. Amazon has the right to first refusal under this agreement.
This was the agreement between Amazon and Future
According to the agreement, Future Coupons had to first offer Amazon for its stake. According to Amazon, its agreement with Future Coons clearly states that it cannot sell its stake to any third party or competitor without its permission. Amazon has a five per cent stake in Future Retail. Big Bazaar and Easy Day Store are operated under Future Retail. Last year, Amazon bought a 5% stake in Future Coupons for Rs 1500 crore.
In February this year, changes in the rules related to foreign investment were made. After this, Amazon bought a stake in Future Group through Future Coupons so that foreign investment rules related to retail could be followed. However, in August, Reliance Retail acquired the retail assets of Future Group in a complex deal.