Indian lenders are set to initiate debt recovery proceedings against Future Retail this week to safeguard their interests after rival Reliance unexpectedly took over some of the retailer's stores, two bankers said.
The high-profile bitter dispute between corporate titans in which Amazon has sought to block Reliance's planned $3.4 billion purchase of Future Group's retail assets is currently before India's Supreme Court.
Amazon.com Inc plans to initiate criminal court proceedings this week against its Indian partner Future Retail for allowing the transfer of assets to a major rival despite a legal prohibition, three sources said.
A Delhi court has halted arbitration proceedings between India's Future Group and its estranged U.S. partner Amazon in light of the national antitrust agency's suspension of a 2019 deal between the two sides.
Future Retail has asked an Indian court to declare arbitration proceedings in Singapore with Amazon as illegal, arguing that India's antitrust agency had suspended a 2019 deal used by Amazon to assert rights over Future.
Amazon has warned India's antitrust body that revoking its 2019 deal with Future Group would send a negative signal to foreign investors and allow local retail behemoth Reliance to "further restrict competition."
Amazon has asked India's antitrust regulator to revoke its approval for Future Retail's $3.4 billion sale of retail assets to Reliance, saying it was "illegally obtained", violating an order suspending the deal.