BackFuture did not make all disclosures: Amazon
Reliance Projects and Property Management had taken possession of approximately 800 stores of Future Group in February after it failed to pay rent of ₹4,800 crore for more than a year
PremiumMUMBAI : Amazon on Monday told the Delhi high court that Future Group has not made all necessary disclosures to the exchanges with respect to Reliance Industries Ltd’s takeover of assets.
Reliance Projects and Property Management had taken possession of approximately 800 stores of Future Group in February after it failed to pay rent of ₹4,800 crore for more than a year.
Future had earlier said it was unable to pay the rent to the landlords, so Reliance had to pay on its behalf. Subsequently, Future Retail Ltd (FRL) paid $14 million through dollar bonds in February. “Until the occurrences came to light in February, Future Retail never revealed the lease transfer of 800-odd stores to Reliance, which occurred in March 2021, neither to the apex court during the hearing of the Amazon-Future Group litigation nor to the stock markets in regulatory filings," Amazon’s counsel submitted before the court.
According to an exchange filing on 26 February, FRL had said it was finding it difficult to finance working capital needs and “termination notices have been received for a significant number of stores due to huge outstanding, and we would not have access to the stores".
The Delhi high court is hearing Amazon’s plea seeking enforcement of a Singapore arbitral tribunal’s order, which stayed the sale of Future Group’s retail assets to Reliance Retail. The matter will be taken up on Wednesday.
“More importantly, why was it not indicated from whom have these termination notices come from? Why was this not informed to Supreme Court? Before making the disclosure why did you (FRL)) tell the apex court about the 1,534 stores and not about the fact that some stores had received termination notices," he said.
Future Group had assured the court that these stores will only move after the scheme has been sanctioned, the counsel said.
Citing another exchange filing of 9 March, the counsel said Future group had received certain termination notices in respect of sub-leased properties from Reliance entities.The counsel argued when were these sub leases supposed to be done my lord, what is the date of these sub-leases?
“Court orders cannot be trifled, leading them down to the garden path (bluffing)", the counsel said. Adding that Future Group was well aware of all the takeover transactions and connived in creating this.
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