Future Group to settle Amazon's legal notice by mediation
New Delhi : The US online retailer Amazon.com has sent a legal notice to Future Group over an alleged violation of their agreement after the latter went into a deal with Reliance.
"We have initiated steps to enforce our contractual rights," a spokesperson for the Seattle-based e-commerce giant said. "As the matter is sub-judice, we can't provide details."
Last year, Amazon had bought 49% stake in one of the Future Groups' unlisted firms - Future Coupons Ltd - with the right to buy into flagship Future Retail after a period between 3 and 10 years. Future Coupons owns a 7.3 per cent stake in Future Retail.
In August this year, Future Group sold its retail, wholesale, logistics and warehousing units to Reliance. The deal is awaiting regulatory approvals.
A source close to the matter has confirmed that the Future Group has received notice from Amazon.
The person added that the Kishore Biyani-led group intends to settle this matter amicably, either through mediation or arbitration.
The source also pointed out that Future Group had made an offer to Amazon, along with other potential buyers, and the deal with billionaire Mukesh Ambani-led RIL was signed only after the e-commerce behemoth declined it.
Moreover, as per Amazon's contract with Future Coupons, the US entity has first right to invest in Future Retail after three years and before ten years.