Page 19 - Banking Finance January 2022

LEGAL UPDATE

Legal

News

Corruption complaints can Amazon's efforts to block Reliance In- visions of the Insolvency and Bank-
dustries' (RIL) acquisition of Future ruptcy Code (IBC).
be filed online with Lokpal Retail's assets. As of September 30, a total of 4,708

now The 2019 deal gave Amazon the op- CIRPs were initiated under the IBC.
An on-line system that permits individu- tion to buy FCPL's promoter Future "The realisable value of 421 cases
als to file corruption complaints with Retail within 3-10 years, which Ama- which were resolved through a resolu-
the Lokpal was inaugurated right here zon has relied on to get a stay on a tion plan as on 30th September, 2021
by the anti-graft ombudsman Chief Jus- proposed buying of Future Group's re- is Rs 2.55 lakh crore for all creditors,
tice Pinaki Chandra Ghose. tail assets by RIL.
including financial creditors. The liqui-
At current, complaints despatched by "Amazon had misled the Commission dation value of these companies was
put up, e-mail or hand-delivered are to believe, through false statements Rs 1.48 lakh crore.
entertained by the Lokpal of India, an and material omissions, that the com- "If no resolution plan is received or no
announcement issued by the personnel bination and its purpose were the in- resolution plan is approved by the Adju-
ministry stated. terest of Amazon in the business of dicating Authority, the corporate entity
Justice Ghose inaugurated the digital FCPL," the CCI noted in its order, plac- proceeds to liquidation. Till 30th Septem-
platform - LokpalOnline - for the ad- ing its prior nod to the combination in ber, 2021, 1,419 CIRPs have yielded or-
ministration of the complaints. It might abeyance and giving Amazon 60 days ders for liquidation, having liquidation
to give notice for the combination,
be accessed by the residents of the value of Rs 52,036 crore," Finance and
nation and complaints might be filed post which the Commission would "ex- Corporate Affairs Minister Nirmala
amine the combination afresh."
from anyplace, anytime at Sitharaman told the Rajya Sabha.
lokpalonline.gov.in.
421 cases resolved under Expenditure on promotion

CCI suspends nod to Ama- insolvency law by e-comm firms is rev-
zon deal with future As many as 421 cases involving a enue expense: ITAT
The Competition Commission of India realisable value of Rs 2.55 lakh crore Expenditure incurred on promotion for
were resolved and 1,149 cases having
(CCI) suspended its nod to Amazon's brand 'Snapdeal' is purely revenue in
2019 investment in Future Coupons a liquidation value of Rs 52,036 crore nature, the Delhi Bench of Income Tax
Private Ltd (FCPL), after finding that went for liquidation under the insol- Appellate Tribunal (ITAT) said. Experts
Amazon had concealed significant in- vency law till this September, the gov- said the ruling will be a huge relief to
formation while seeking regulatory ernment said. e-commerce operators facing litigation
approval. The suspension, termed "un- Corporate Insolvency Resolution Pro- on the same issue by treating adver-
precedented" by experts, may hit cess (CIRP) is conducted as per the pro- tisement expenses as revenue.

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