A promoter entity requested by ED to provide documents for investigation: FRL


The Enforcement Directorate (ED) has asked a promoter entity of Kishore Biyani’s Future Retail Ltd (FRL) to provide documents relating to the struggling retail giant’s deal with Amazon in 2019, said on Wednesday. the society.

FRL, however, said he was not given any instructions to provide a document.

With regard to the Directorate of Enforcement, FRL has not received any instructions to provide information and documents as part of the investigations of the Directorate of Enforcement, according to a regulatory file from FRL.

FRL’s submission came in response to a clarification requested by the ESB on a report that claimed the ED had requested documents from Future Group on the disputed deal with Amazon for the sale of 49% stake in Future Coupons. Pvt Ltd (FCPL). FCPL is a shareholder of Future Retail.

“It can be noted that no proceedings have been initiated against FRL for such an instruction to be reported to the stock exchanges. Please also note that without the authorization of the Execution Department, we would not be able to share the correspondence that the sponsoring entity has had with them.As and if and when there is a development to report, we will, said FRL.

The move comes days after FRL’s independent directors approached the Competition Commission of India (ICC), urging it to revoke its approval of the Amazon-FCPL deal in 2019, alleging that the e-commerce major had made false statements to her. .

The Commission should immediately confirm the revocation of the approval granted to Amazon for its investment in FCPL, the letter said.

CCI would have grown suspicious and forwarded the documents to the Department of Economic Affairs (DEA) for review if the acquisition of control rights is permitted under FEMA regulations, they said, adding that Amazon cleverly prevented CCI. to do so and had concealed that his investment in FCPL is automatic.

In November 2019, the CCI agreed to Amazon to acquire a 49% stake in FCL.

In August last year, Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd, announced the acquisition of the retail and wholesale business, and logistics and warehousing business of Future Group for Rs 24 713 crore.

Amazon is challenging the deal through its actions in FCPL and has approached the Singapore International Arbitration Center (SIAC). The companies have also taken the Indian courts in this case.

In October last year, an interim ruling was issued by the EA (Emergency Arbitrator) in favor of Amazon, prohibiting FRL from taking steps to dispose of or encumber its assets or issue securities for guarantee funding for a limited party.

This was also confirmed by SIAC last month and said FRL was a party to the ongoing arbitration between Amazon and Future Group in the dispute over the sale of its assets to Reliance Retail.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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