Armed with a Superior Court order, Future Group has told Amazon that it is not responsible for paying any compensation as there has been no breach of contract.
In a letter addressed to the American e-commerce giant, Future said that it has not breached any contractual clause that was signed between Future Coupons (FCPL) and Amazon in 2019.
“We deny that we have acted against our contractual obligations and reneged on them for personal gain or benefit, as alleged or not at all. Such claims have no foundation, ”he said. A copy of the letter was reviewed by Line of business.
The letter, written to Amazon on December 31, was signed by Kishore Biyani and other Future Group promoters, Future Corporate Resources Private Limited and FCPL.
Fall sale
The Future group and Amazon have been at odds since the former announced a 24 billion rupee divestment of assets to Reliance Industries, owned by Mukesh Ambani. Amazon had alleged that Future Retail, the retail arm of Future Group, had breached a contract by signing an agreement with RIL and therefore owed damages.
Earlier, during the Delhi High Court hearing, Harish Salve, lead counsel who appeared on behalf of FRL, had said that if there was a breach of contract, Biyani of FCPL owed damages and not FRL.
Now, FCPL has said: “We deny that there has been an Event of Default, as alleged or at all, and that we are liable for liquidated damages.”
Promoters’ position
The promoters of the company explained that between March and August 2020, after the fall in its share prices and the impact of the Covid-19 pandemic, FCPL had requested financial help from Amazon, but received no help.
In April, FRL promoters had to pledge more shares due to falling share prices. “All your actions lacked good faith. Except for offering lip service and superficially trying to show concern, you didn’t make any serious or genuine effort, ”Future said.
Queries sent to Amazon went unanswered.
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