Accusing Future Retail of fraud, Amazon urges RBI to conduct a forensic Audit.
- ByStartupStory | May 3, 2022
In a recent development, where the Reliance Industries Ltd (RIL) took over 800 stores of Future Retail, the E-commerce giant Amazon urged the Reserve Bank of India (RBI) to conduct a forensic audit of Future Retail Ltd for the past three years since it had allegedly committed fraud by letting Reliance take over its stores.
Amazon wrote a 14-page letter to RBi stating that RBI needs to conduct a thorough investigation into the fraud done by FRL. The reason why Amazon believes that FRL along with RIL implemented this strategy to buy the stores was that FRL wanted to sell its assets to Reliance which wasn’t possible since Amazon prohibited the deal from happening, which happened back in August 2020.
Since then, the two sides have been going back and forth through a number of issues which has dragged the matters to a host of judicial authorities across the borders. And this wasn’t the first time that Amazon had accused both the companies of fraud. The Future Group has more than 1700 outlets which include the popular Big Bazaar stores, but the major demerit is that the company is that it is knee-deep in debt and on the brink of bankruptcy.
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