Future Retail independent directors claim Amazon deal violates FEMA, FDI rules

Independent directors of Future Retail NSE 0.10 % (FRL) said Amazon is in violation of foreign exchange rules since the Singapore arbitral tribunal has made FRL a party to the arbitration proceedings. In a letter to the stock exchange, independent directors said Amazon has also concealed facts, made misrepresentations and false representations to the Competition Commission of India to seek approval for its investment in Future Coupons, a promoter holding company.

The assertions of Amazon which it has claimed with success in the arbitral tribunal meant Amazon has significant strategic rights over FRL superior to all the shareholders, lenders and creditors of FRL, without holding even a single share in FRL.