Indian court agrees to send Future Retail into bankruptcy in another setback for Amazon

An Indian court on Wednesday ordered the initiation of insolvency process against Amazon’s estranged partner Future Retail in yet another setback for the American e-commerce group in the key overseas market.

Amazon India had alleged that the petition filed by the nationalized bank was of “fraudulent and malicious intention.” It also accused Future Retail’s 26 creditors, including Bank of India, of colluding with the retail giant to deny its rights.

“After hearing both the parties and on perusal of material on record, we are of the view that the FA (Facility Agent, which is Bank of India) has been signed within the ambit of the RBI Circular by all the 26 Lenders and the question of FA being in violation of any injunctions does not arise as no sale of any assets has happened and seeking consent of Amazon under Clause 5.1.2 was not breached,” the court said in its order.

Amazon, which has spent more than $6.5 billion in its India operations, is not amused. Earlier this year, it took out newspaper ads to accuse that Reliance and Future had indulged in fraudulent practices by “removing the substratum of the dispute.”


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