Trader’s body CAIT on Monday said Amazon’s “manipulative, coercive, arbitrary and dictatorial policies” to dominate India’s retail trade should come to an end, hours after the Delhi High Court passed an order related to Future Group’s proposed asset sale to Reliance Retail, a deal that is being opposed by Amazon.
CAIT Secretary General Praveen Khandelwal said, “This judgement vindicates the stand taken by the CAIT since a long time that Amazon is openly violating the FDI Policy of the Government and reinforces Amazon’s blatant conduct and an urgent need for the Enforcement Directorate and other statutory authorities to take corrective measures so as to prevent Amazon from abusing the laws of the land for its benefit.”
He said that the manipulative, coercive, arbitrary and dictatorial policies of Amazon to control & dominate the retail trade of India through e-commerce should come to an end now.
In August 2019, Amazon bought 49 per cent stake in one of Kishore Biyani-led Future Group’s unlisted — Future Copouns Ltd (FCL) — with the right to buy into the listed flagship FRL after a few years, if the government were to undo its bar on foreign ownership of multi-brand retailers.
Earlier this year, Future Group cut a deal with Reliance Industries Ltd (RIL) to sell assets for Rs 24,713 crore. Then, Amazon dragged Future to arbitration at SIAC claiming that its contract with the unlisted FCL barred a transaction with a number of persons and companies, including Reliance.
On October 25, the Singapore International Arbitration Centre (SIAC) passed an interim order in favour of Amazon barring FRL from taking any step to dispose of or encumber its assets or issue any securities to secure any funding from a restricted party.