The Kishore Biyani-led Future Group in its suit before the Delhi High Court and has argued that Amazon is absent from the shareholder's agreement between Future Retail and Future Coupons, and has no control over Future Retail . It has further argued that Amazon's investments are limited to Future Coupons.

Arguing the case in the Delhi High Court today, Harish Salve, who is representing Future Retail, said that “If Amazon doesn’t have skin in the game, it can’t object to the scheme.”

He further argued that the Companies Act provides that entities with shareholding less than 10 percent can’t object to the scheme.

“Passive holding of less than 10 percent does not entitle one to object to such schemes. Amazon is misrepresenting to the world that FRL has flouted a dishonest agreement. Amazon has no rights over FRL and can’t control the board of FRL which is free to act,” Salve said.

The Future Group counsel also reinterred their stand that any reliefs that Amazon claims lie against Biyanis’ Future Coupons.

“Amazon looking to cause delays and this will hurt employees, public shareholders, and stakeholders. The emergency arbitrator award is a piece of paper, nothing more. Amazon is acting like the East India Company of 21st Century. Amazon’s idea is that you either do business with me or shut down.” Salve argued strongly.

Background

Amazon had in August last year bought 49 percent in one of Kishore Biyani-led Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd (FRL) after a few years and if the government were to undo its bar on foreign ownership of multi-brand retailers.

However, FRL ran into a severe cash crunch soon after the nationwide lockdown imposed to curb the coronavirus outbreak. It cut a deal with Reliance Industries to sell assets for Rs 24,713 crore, infuriating Amazon. The US firm claims that its contract with the unlisted Future Copouns Ltd (FCL) barred a transaction with a number of persons and companies, including Ambani and Reliance.

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(Edited by : Abhishek Jha)

First Published:Nov 19, 2020 2:39 PM IST