FRL urges CCI to intervene and stop Amazon’s designs to make FRL bankrupt
Future Retail Limited’s (FRL) independent directors wrote to the Competition Commission of India (CCI), urging it to act to stop Amazon from “perpetuating its evil non-desirable designs” for the purpose of eliminating competition.
In a letter to CCI Chairman Ashok Kumar Gupta, urged CCI to intervene and stop Amazon’s designs to make FRL bankrupt, make the Indian public sector banks write off Rs.30,000 crore, render 6,000 SMEs insolvent and make 50,000 employees and their families jobless.
The letter has been signed by Ravindra Dhariwal, independent director, FRL.
“In the present case, it is not a question of mere incorrectness, it is a question of concealment, false representation, and misrepresentation. It is not possible to hold that Amazon has not committed concealment, false representation, and misrepresentation,” the letter read.
The letter said that it is clear that the transaction approved by the Commission (that is a simple investment by Amazon in FCPL, with only investment protection rights) is not the one that is now claimed by Amazon.
The approval given by the Commission does not hold good due to the concealment and misrepresentation and false representations made by Amazon, the letter added.
As a matter of fact, Paragraph 16 of the Commission’s order dated 28-11-2019 (where approval was granted to Amazon for its investment in FCPL) states that the approval given by the Commission to the combination stands revoked if, at any time, the information provided by the acquirer is found to be incorrect.
“The transaction as per Amazon is an investment in FCPL for the only purpose of getting strategic, special, and material rights over FRL, enabling Amazon to prevent the independent directors from discharging their fiduciary duties. Certainly, the Commission has not granted its approval to this transaction,” the letter said.
The Commission should revoke the approval granted to Amazon for its investment in FCPL immediately, they urged.
The directors explained that “Future Retail is on the brink of bankruptcy” and any delay would jeopardize the livelihood of 50,000 employees and Rs.30,000 crore of bank debt.
Also, 6,000 SMEs would become insolvent and investment of lakhs of public shareholders destroyed, they said.
[With Inputs from IANS]
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