Amazon serves legal notice to promoters of Future Group for allegedly breaching a non-compete contract

Global retail giant Amazon has sent a legal notice to promoters of Future Group for allegedly breaching a non-compete contract over the latter’s deal with Reliance Industries

Mumbai: Global retail giant Amazon has sent a legal notice to promoters of Future Group for allegedly breaching a non-compete contract over the latter’s deal with Reliance Industries NSE 2.13 % (RIL), a few months ago, Future Group has signed a big deal with Amazon, who will help Future Retail reach a wider customer base, which in turn will facilitate packaging and picking up of Amazon products.

Future Group’s Republic Day ‘Sabse Saste Din’ sale will also feature on Amazon.In August 2019, Amazon bought a 49 per cent stake in Future Coupons for about Rs 1,500 crore. The latter owns 7.3 per cent stake in Future Retail NSE -1.89 % that operates in more than 1,000 stores under Big Bazaar, Fbb, Foodhall and Easyday Club brands.

RIL said its unit Reliance Retail Ventures (RRVL) is acquiring the retail and wholesale business and the logistics and warehousing business from the Kishore Biyani-promoted Future Group as going concerns on a slump sale basis for a lump sum total consideration of Rs 24,713 crore.

The rights in Amazon-Future Group case pertain to set of non-compete-like pact which did not allow Biyani’s Future Group to get into a new deal with a competitor of Amazon. The future course for the resolution of the situation is likely to involve grievance redressal mechanism which includes courts, arbitration.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time