[ashokrajagopal]

All it takes is "You appear before JPC on this date, or your website will be taken down on a day decided by the JPC."

May be the parliament is in principle opposed to knee jerk reactions.
May be the cabinet can't pass an order that quickly.
May be the parliament is not comfortable ramming thru acts fast.
May be it is very difficult to bring down a website.
May be the govt is not comfortable dealing with issues of huge monetary impact without thorough discussions..

Wait, none of that is true...

May be "powerful" govt needs a whole other definition in India.

[avishar]

On the other hand, I am glad Amazon is trying to stall Future Group's sale to RIL. I really don't want that to happen, because that will be a level of consolidation that is very uncomfortable. That said, I also don't want them to fall entirely into Amazon's hands too!

Brick-and-mortar retail chains have been going through a bad time in India for a last couple of years and we have already seen a lot of consolidation and erosion of sales to online shopping. If RIL aquires Future, then Reliance Fresh + Big Bazaar + Easyday etc will all consolidate into Reliance. The only other national chains left are DMart and More Retail (owned earlier by the Aditya Birla Group).

Amazon has made investments and eyeing not only Future Group but also More Retail. Becase Amazon has also invested in the parent company of the More retail chain. So if they manage to keep Future for themselves the plan is to all consolidate under Amazon.

Basically the organised retail market, especially for daily groceries are being chased by four big players. Reliance, Amazon, Walmart and Chinese players. It is a cut-throat business with razor-thin margins. So unless one has deep pockets, you will not survive.

Walmart acquired Flipkart but it now wants to get into physical stores. This was seen in Flipkart's surprising buy of a stake in Aditya Birla Fashion this week.

Flipkart to acquire 7.8% stake in Aditya Birla Fashion for Rs 1,500 crore

The Chinese on the other hand are heavily invested in foodtech companies like Zomato, Swiggy, Bigbasket and Grofers with major investors being Alibaba and Tencent. And as they pour in more money, they want to consolidate them into 1 or just 2 big players to take on RIL and Amazon.

The only independent guy holding out is Dmart, the stock market's favourite. But as many have seen from their recent earnings reports, they are feeling the heat after many quarters of scorching growth.

The new wildcard to jump into this is battleground (or bottomless pit?) is Tata. But as we know even their entry will definitely be with a partner with a foreign firm (rumours are that it is Walmart). But it could be someone like Softbank too.

[fhdowntheline]

The JPC must order a shutdown of Amazon India services for a specified period , say 15 -30 days unless the representatives appear as directed.
They cannot be allowed to continue in BAU mode in contravention of the country's constitutional framework.

[kiku007]

Originally Posted by V.Narayan

Telling the JPC of the worlds largest democracy to shove it?

Sir,

What's this obsession with adjectives that may not mean nothing to the common man nor corporates?

It's not being the largest or oldest or richest democracy that matters. What matters is the certainty of adverse ramifications that a common man or a corporate cannot influence through rightful or extra-judicial means. I suppose people don't usually mess around on a similar matter with the CPC or KSA.

Even for the most heinous crime, a couple of weeks/months of media trial is the worst that could happen in India.

The following blog articulates it better,
https://www.telegraphindia.com/opini...es/cid/1795505

"This is that the institutions of Indian democracy are so much weaker."

Before anyone adds new comments adds petrol to the fire, it may be worth your while to read the below reply.

Originally Posted by DigitalOne

With all due respect, I think the thread title and the starting post are needlessly dramatic. The facts are much more mundane.

I don't even understand what wrong Amazon did here. So other than some media and social media frenzy which may see some flavors of Boycott-Amazon, this too will die soon.

On a lighter note, it's like when a son-in-law declines to attend a tea-party at his father-in-law's place. The reasons for declining nor the importance (or the lack of) of the party aren't important. How can one decline? Let's ostracize him for this betrayal!

[AMG Power]

Pulling rank again:

https://m.timesofindia.com/business/...w/78881825.cms

No prizes for guessing if there's a connection. I hope we don't get classified as the largest banana republic in the world..

[Samurai]

Originally Posted by fhdowntheline

The JPC must order a shutdown of Amazon India services for a specified period , say 15 -30 days unless the representatives appear as directed.

You mean punish all the Indian customers of Amazon AWS services, which includes lots of government departments too?

Doesn't make sense to me at all. I am an AWS customer too. I don't see why my business should be affected because of this incident.

[Jeroen]

Originally Posted by AMG Power

Pulling rank again:

https://m.timesofindia.com/business/...w/78881825.cms

No prizes for guessing if there's a connection. I hope we don't get classified as the largest banana republic in the world..

I have never understood how new (tax) legislation can be applied retrospectively. Apart from the legal aspects, this seems completely wrong from so many other dimensions. If anything, a government that fills its coffers by introducing laws that apply retrospectively must be regarded with due care and caution. How can you trust them?

Jeroen

[AMG Power]

Originally Posted by Jeroen

I have never understood how new (tax) legislation can be applied retrospectively.

Neither does anyone else. But a look at the "connection" might help it fall into place.

Originally Posted by Jeroen

If anything, a government that fills its coffers by introducing laws that apply retrospectively must be regarded with due care and caution. How can you trust them?

And that's why it might soon be referred to as the world's largest banana republic.

[AMG Power]

Thoughtful of Jeff to give Mukesh a present for Navarathri

RIL stocks under pressure after Singapore court rules in favour of Amazon

[Sankar]

Members questioned the e-commerce major about its revenue mode, how much revenue it generates and what per cent of it Amazon reinvests in India. The panel also asked questions about how much tax it pays in India, sources in the committee said.

On Wednesday, members from Amazon India's legal and policy teams were present at the meeting and shared recommendations for the Personal Data Protection Bill.

While Amazon India and Amazon Web Services were called together, they made separate presentations, as per the sources cited above.

Google and Paytm are scheduled to appear before the panel on October 29.

The panel has also issued summons to telecom giants Reliance Jio and Airtel, smartphone application firm Truecaller, and cab aggregators Ola and Uber.

The Joint Committee of Parliament on the Data Protection Bill sought an affidavit from Twitter Inc, the U.S.-based parent company of the social media platform, asking them to explain why it had shown Ladakh as a part of China, a senior member of the panel said on Wednesday.

Twitter representatives on Thursday verbally apologised for geo-tagging Leh, the capital city of the Union Territory of Ladakh, as part of China while appearing before the Joint Parliamentary Committee on Personal Data Protection Bill, 2019. The committee, however, has asked the microblogging site to follow it up with a written apology and also submit an affidavit in the matter.

--

Eight absolutely unknown facts are emerging in the Bezos vs Ambani battle.
Updated : October 27, 2020 10:08 AM IST

Src https://www.cnbctv18.com/retail/in-b...on-7310031.htm

1. Has Amazon's Jeff Bezos disclosed all of the Amazon-Future agreements to Future Retail Ltd (FRL) shareholders?

To this, corporate watchers say no. Bezos has invested 49 percent in Future Coupons Ltd (FCL), a promoter company of FRL. 51 percent of FCL is held by Kishore Biyani, an Indian resident. FCL, in turn, has 9.82 percent holding in FRL.

It looks as though that FCL is controlled by Biyani with his holding of 51 per cent. This is a requirement under India's FDI Regulations.

Bezos cannot hold directly even one share in FRL. On the face of it, he seems to be in compliance with FDI Regulations. But, the reality is different.
(i) Tier 1 is a shareholders' agreement between FRL, FCL and other promoters of FRL – in terms of this agreement, without FCL's consent, FRL cannot transfer its assets or business to any third party and its board cannot even consider such a proposal.

(ii) Tier 2 is a shareholders' agreement between FCL, Amazon and other promoters of FRL – in terms of this agreement, Bezos has taken over the rights of FCL under the FRL shareholders' agreement.

(iii) Thus, effectively Bezos controls FRL.

The Future Retail shareholders agreement and the Future Coupons shareholders agreement have never been disclosed to any Indian regulator.

If they are disclosed:

(i) SEBI will find that Bezos has taken control of FRL and will mandate him to make an open offer at a price of Rs 500 per share.

(ii) ED will find that Bezos has invested in and taken control of a multi-brand retail company without Government approval and hoodwinked the Government of India.

2. Has FRL amended its Articles?

Amazon's rights in FCL were carried as part of the amendment to the Articles of FCL.

FRL Articles have not been amended. This is because, had the amendment been proposed to the shareholders disclosing that Amazon will exercise the rights of FCL under FRL shareholders' agreement, the public shareholders would have never approved it.

3. Amazon could not have invested in FRL through FDI route under FDI Policy. Then, how does it have enforceable rights against FRL?

For this, Amazon has gone through the above mired (and convoluted) structure;

FRL is engaged in Multi Brand Retail Trade (MBRT); Foreign Direct Investment (FDI) - up to 51 percent - in MBRT is allowed only with prior permission of the government, which will also be subject to veracious conditions, including sourcing of materials within India and management control etc.;

Amazon wants to control multi brand retail space, but without any of the legal hassles; therefore, in a convoluted manner, it went ahead with the mired illegal structure; if the veil is pierced and the transaction structure is studied in detail, it will be found illegal, corporate watchers said.

The fact that Amazon has obtained an interim order from the Emergency Arbitrator injuncting the public company, FRL not to proceed with the scheme, inspite of not having any direct shareholding in FRL, shows that the contractual rights are nothing but "control", in violation of SEBI and FDI Regulations.

Bezos is learnt to have followed a similar investment structure while investing in More Retail; where he invested Rs 4,200 crore;

For FDI violations, the consequence is, apart from annulment of transactions, Bezos is exposed to penalty of up to three times the investment – ~Rs 5,630 crore x 3 times = Rs 16,890 crore, sources said.

For violation of SEBI Takeover Regulations, apart from penalty, they may also be liable to be prosecuted.

4. How as a foreign company Amazon asserted control over FRL and its Board? And on FRL shareholders?

The assertion shows that Amazon has violated FDI and SEBI Regulations. If Amazon asserts control, it needs to make an open offer.

5. Amazon is asserting control over FRL. Does it violate FDI policy?

Yes.

6. Have all of the agreements been disclosed to regulators – SEBI, ED, etc.?

No – details of transaction selectively provided – in an obfuscated manner

Enforcement Directorate, SEBI, Ministry of Company Affairs, and other authorities etc, must direct Amazon to disclose the agreements and details of actual arrangements in and commence inquiry.

7. What is the crux of the SIAC'd Interim Order?

It records that Amazon's entire investment was for its direct interests in FRL.

8. Is Mukesh Ambani a competitor of Bezos?

Bezos cannot carry on multi brand retail in India. He can carry on only market-place e-commerce in India. Yet, his Amazon is referring to Ambani's Reliance as its competitor. Reliance can be Amazon's competitor only if the latter is permitted to do MBRT.
--

Amazon Arbitration: Four options available for Kishore Biyani’s Future
Updated : October 28, 2020 09:11 PM IST

Src https://www.cnbctv18.com/legal/amazo...re-7321961.htm

The Future group, with its back against the wall and with the clock ticking on the Rs 24,700 crore deal, may be wary of waiting for the Arbitral Tribunal.

If the Future Group chooses to not wait for the Arbitral Tribunal, it can contest the applicability and enforceability of the interim directions in an Indian High Court.

Given the lack of recognition and enforcement of an emergency arbitrator’s directions, Future Group could simply proceed with the said transaction, while considering an appeal when the Arbitral Panel is finally constituted

[AMG Power]

Jeff now needs to start attacking Jio in the telecom space.

This will keep Mukesh busy and all riled up when he realises its war on all fronts.

To implement the strategy Jeff needs to buy Airtel - would be similar to any of us buying a mobile.

Payment can be made using Jeff's credit card.

[V.Narayan]

Originally Posted by AMG Power

Jeff now needs to start attacking Jio in the telecom space.

This will keep Mukesh busy and all riled up when he realises its war on all fronts.

To implement the strategy Jeff needs to buy Airtel - would be similar to any of us buying a mobile.

Payment can be made using Jeff's credit card.

Originally Posted by AMG Power

Thoughtful of Jeff to give Mukesh a present for Navarathri

RIL stocks under pressure after Singapore court rules in favour of Amazon

Originally Posted by AMG Power

And that's why it might soon be referred to as the world's largest banana republic.

Dear @AMG Power, I started this thread to highlight the need to obey the Indian Parliament and honour our Constitution. Given the current business affairs in the retail space it is quite understandable that the thread has morphed into a discussion on the Amazon-Ambani-Biyani triangle. And I thank members who have written factual posts that enrich our knowledge - Sankar, avishar, DigitalOne. However this thread is not a "hate Ambani (or anyone else)", "kiss Bezos (or anyone else)" thread. So please may I request you to ease up a bit. This thread is about discussion and learning not flinging mud a la Twitter. If mud flinging is what you need you can always start your own thread.

[AMG Power]

Originally Posted by V.Narayan

Dear @AMG Power, I started this thread to highlight the need to obey the Indian Parliament and honour our Constitution.

Dear @V.Narayanan, thank you for your post addressed to me. Now let's spend some time getting the facts right.

Firstly you did not start this thread. You had made this as a regular post under the "Amazon has a counterfeit goods problem" thread. I hope you remember that.

It was I who made a request through the report posts section to convert the post into a separate thread. So the starting of a new thread was as a result of my request (maybe others too). So your statement that you "started a separate thread to highlight the need to obey the Indian Parliament and honour our Constitution" is factually incorrect.

Secondly, starting a thread does not give you, me or anyone else the right to decide the contents of that thread. That is a function of the moderators and let me tell you they are more than capable of carrying out that function properly.

Thirdly, if you do not like a post you have the freedom to report that post. That is the recourse you have.

Originally Posted by V.Narayan

If mud flinging is what you need you can always start your own thread.

I wouldn't call it mudslinging. It's more calling a spade a spade and part of the reason for my requesting a separate thread. And as the thread has been created per my request I guess the question of starting another one doesn't arise. Thank you for the permission all the same.

[v1p3r]

Originally Posted by Sankar

--

Eight absolutely unknown facts are emerging in the Bezos vs Ambani battle.
Updated : October 27, 2020 10:08 AM IST

Src https://www.cnbctv18.com/retail/in-b...on-7310031.htm

Might be useful to mention that this article was first posted by a Reliance subsidiary.

I pity anyone who readily believes anything they read in the mainstream Indian media.

[DigitalOne]

Originally Posted by DigitalOne

They have been given a chance to appear before the panel again on 28th, which they will grab.

So as predicted, Amazon appeared before Joint Select Committee on Data Protection Bill, 2019 (this is the right official sober name for the panel, not an ominous sounding 'JPC' ) and gave their views.

Source

Days after Amazon refused to appear before the parliamentary panel on data protection Bill, its top executives in India on Wednesday deposed before the committee and were questioned about the company’s revenue model and how much tax it pays in the country.

The Joint Committee on Data Protection Bill, 2019, chaired by BJP MP Meenakshi Lekhi questioned Amazon India and Amazon Web Services representatives separately for nearly two hours each.

I am not sure why they were asked questions on their revenue model and taxes they pay. Probably egos got ruffled when Amazon didn't appear the first time.

End of story.