The independent directors of Future Retail Limited (FRL) have written 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, the independent directors of the FRL on Sunday, 8 August, urged the 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 small and medium enterprises (SMEs) insolvent and make 50,000 employees and their families jobless.
The letter has been signed by Ravindra Dhariwal, independent director, FRL.
As a matter of fact, Paragraph 16 of the CCI's order dated 28 November 2019 (where approval was granted to Amazon for its investment in the Future Coupons Private Limited [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.
"In the present case, it is not a question of mere incorrect, 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 CCI (that is, a simple investment by Amazon in FCPL, with only investment protection rights) is not the one which is now claimed by Amazon.
"The transaction as per Amazon is 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 approval given by the CCI does not hold good due to the concealment and misrepresentation and false representations made by Amazon, the letter added.
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