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Big blow to Amazon, fined 200 crores in Future Group case, 45 days ultimatum

The NCLAT issued its order on Monday in the Amazon-Future deal. The NCLAT has asked the American e-commerce company to deposit a fine of Rs 200 crore within 45 days in this case.

The National Company Law Appellate Tribunal on Monday gave a major blow to the American e-commerce company Amazon. The Tribunal (NCLAT) issued its order regarding the Amazon-Future deal. The NCLAT has asked the American e-commerce company to deposit a fine of Rs 200 crore within 45 days in this case. NCLT said that its countdown has started from today i.e. June 13.

Amazon hides deal details

Along with this, the NCLAT also upheld the Competition Commission of India (CCI) order suspending an investment deal between Amazon and Future Group in the year 2019. The NCLAT upheld the CCI order saying that Amazon did not provide complete and transparent information about its strategic interests in Future Retail Limited. The closed retail store chain Big Bazaar was operated by Future Retail Limited (FRL), a Future Group company.

Amazon challenged the CCI order

The CCI had also suspended the related investment deal, saying that Amazon had hidden the information. The NCLAT concurred with CCI’s contention and said that Amazon failed to provide relevant information related to the agreements. Let us tell you that the CCI had suspended the Amazon-Future deal in an order issued in December 2019. Amazon challenged the said order of CCI in NCLAT.

The matter related to the deal of Amazon-Future

The case pertains to an investment deal of Rs 1,400 crore between Amazon and Future Coupons Pvt Ltd. Initially, the deal had got all the necessary regulatory approvals. Later, a Future Group company had sought withdrawal of approval from the CCI over the dispute over the deal with Reliance Industries for Future Retail. CCI approval is required for such investment deals. The CCI, after considering a petition filed by the Furver Group Company, found that Amazon had suppressed certain information.

Amazon has only this option

The CCI said that Amazon had not disclosed the purpose for which the money was invested in Future Coupons. Amazon, disagreeing with the order of the CCI, challenged it in the NCLAT. Now Amazon has also got a setback from NCLAT. Amazon now has only one option left. She can challenge the order of NCLAT in the Supreme Court. Although Amazon has not disclosed anything about this yet.