India’s financial crime-fighting agency has ordered Future Group to submit documents related to its 2019 deal with Amazon.com Inc. as part of a probe into possible breach of foreign investment laws, as per sources and a notice seen by Reuters.
The demand indicates heightened scrutiny of a deal at the heart of legal battles between Amazon and Future after the latter decided to sell retail assets to rival Reliance Industries for $3.4 billion in 2020. That deal has been put on hold by an arbitrator and Indian courts after Amazon argued Future had violated its contracts with the U.S. company by entering into the sale. Future denies that, and says Amazon is illegally exerting control over the Indian firm’s business decisions. In a confidential notice, the ED asked a Future unit to submit all correspondence in respect of the investment the U.S. firm made in Future two years ago.
Meanwhile, Future group firms, on directions by the NCLT, have deferred meetings of shareholders and creditors, called for on November 10 and 11, to seek approval for the proposed merger into Future Enterprises, as per filings, including by Future Retail, Future Enterprises, Future Lifestyle Fashions and Future Supply Chain Solutions.
(With PTI inputs)
