Reliance Industries and Future Retail Limited
– Photo: twitter: @CCI_India
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Delhi High Court dismissed the petition
According to sources, Amazon has also filed an appeal before the Division Bench of the Delhi High Court on December 21 against the decision of the single-member bench of the court. A Delhi High Court bench, in its judgment on 21 December, rejected Future Group’s plea to stop Amazon from writing to the regulatory authority, but at the same time continued work on regulators to decide on the deal It was also agreed to keep it.
Amazon was informing regulatory authorities about the arbitration decision of the Singapore International Arbitration Center (SIAC). During this time the court also made a number of comments. In which it said that Amazon’s attempt to control Future Retail through a series of agreements with the unlisted entity of the Indian company would be in violation of FEMA’s FDI regulations.
In a letter sent by Amazon on January 5, Sebi informed the Sebi about the formation of an arbitration tribunal, moving the arbitration process forward. In view of this situation, Amazon has requested Sebi to suspend the review of the deal being done by it and not to give a clearance. The letter also urged the market regulator to instruct the Indian stock markets not to give any clearance or approval to Future Retail Limited.
What is the dispute?
The case relates to the acquisition of 49 per cent stake in Future Group company Future Coupons Ltd by Amazon in August 2019 and the right to purchase the first stake in the group’s flagship company Future Retail. Amazon had spent Rs 1500 crore for this stake. Future Coupons also has a stake in Future Retail. The dispute in this regard arose when Future Group entered into an agreement to sell its retail, warehousing and logistics business to Reliance Industries for around Rs 24,000 crore.