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Amazon writes to Future Retail’s independent directors, alleging a $1.5 billion fund diversion

Future Retail (FRL) approached Reliance Retail in 2020 for a $3.4 billion buyout, citing heavy losses and possible dissolution. This clearly did not sit well with Amazon, which purchased 49 percent stakes in Future Coupons before acquiring a 3.58% stake in FRL in 2019. As the feud between Amazon and Future Group heated up in 2021, the former accused the latter of financial irregularities.

The US-based ecommerce giant claims that significant amounts may have been diverted from Future Retail in a letter to the company's independent directors. "By unwinding at least a portion of these transactions, Future Retail will be able to immediately partially repay the outstanding debt owed to banks and creditors, ensuring business continuity and survival," it added. Amazon has urged the independent directors and regulatory bodies to consider an independent investigation after alleging significant fund diversion.

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