CAIT urges ITC to revoke Amazon’s approval for future coupon deal, Retail News, ET Retail

The merchant body CAIT said on Wednesday it had urged India’s Competition Commission to revoke the approval given to Amazon two years ago for its deal with Future Coupons, alleging that the e-commerce major had made false statements to obtain the regulatory green light. The development came after independent directors of Future Retail Ltd (FRL) wrote to the chairman of India’s Competition Commission (ICC) on Sunday about it.

The Confederation of All Indian Traders (CAIT) has also written to the CCI to highlight the claims of the independent directors of Future Retail.

“Paragraph 16 of the Commission Order of 28-11-2019 approving Amazon’s investment in FCPL stipulates that the approval given by the Combination Commission is revoked if, at any time, the information provided by the ‘Acquirer prove to be inaccurate. in our opinion, the Commission has no choice but to revoke the approval, ”said CAIT.

It argued that the ICC cannot avoid its obligation to revoke the approval given by using its powers under section 45 of the Competition Act.

Any further action by the Commission, such as imposing a sanction, will not be enough and will be illegal and will be against public order and cause public harm, the trader’s body said.

“Given the urgency of the matter and the public interest and public good associated with it, we ask that you take immediate action by declaring that the approval granted to Amazon is revoked and responding to our letter. at the earliest, “CAIT said.

CAIT has claimed that all statements made by Amazon to CCI at the time of the approval request are misrepresentation, misrepresentation and cover-up.

“It is deliberate and intentional to only obtain approval by any means whatsoever in order for the control rights to FRL to be obtained,” CAIT said.

Amazon did not respond to an email query about it.

In the escalating Future Group-Amazon feud, independent directors of Future Retail Ltd have urged the Competition Commission to revoke the approval given two years ago for Amazon’s deal with Future Coupons, alleging that the ecommerce major had made false statements to get the settlement nodding.

The independent directors of Future Retail Ltd (FRL) wrote to the chairman of the Indian Competition Commission (ICC) on Sunday on the matter.

The ICC should immediately confirm the revocation of the authorization granted to Amazon for its investment in Future Coupons Pvt Ltd (FCPL), according to the letter written by the independent directors to the regulator.

“Time is running out and the Commission must act immediately. Any delay would have serious repercussions,” he added.

A copy of the letter was given to the scholarships by FRL.

According to the letter, the Commission’s confirmation will allow independent directors to “fulfill their fiduciary obligations to the hundreds of thousands of FRL’s small public shareholders, FRL’s lenders and creditors and to protect the public interest.”

The approval given by the Commission is invalid due to cover-up, misrepresentation and misrepresentation by Amazon, according to the seven-page letter written to ICC chairman Ashok Kumar Gupta.

The independent directors also asked CCI to prevent Amazon from “perpetuating its unwelcome evil designs” to bankrupt FRL and jeopardize Rs 30,000 crore in debt granted by public sector banks to the Future group.

In November 2019, CCI agreed to Amazon to acquire a 49% stake in FCPL and FCPL is a shareholder of Future Retail Ltd.

According to the letter, Amazon had “not disclosed its strategic interest in FRL” while obtaining approval from the ICC to prevent it from referring the transaction to other government agencies who “reportedly responded that the transaction is illegal.” .

“Amazon has covered up facts, made false statements and made false statements to the Commission,” the letter states.

Amazon had tried to avoid reporting and assessing by the Commission the actual transaction made by Amazon, including that of the trade deals, the administrators argued.

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