How it’s Reliance vs Amazon
The corporate battle has embroiled businesses led by two of the world’s richest men – Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani. Amazon has been opposing Future group’s pact with billionaire Mukesh Ambani’s RIL that was signed in August last year. The deal entails sale of Future Group’s retail, wholesale, logistics and warehousing units to Reliance Retail Ventures Ltd. Amazon dragged Future Group to arbitration at SIAC arguing that the company violated its contract by entering into a deal with rival, Reliance
Amazon claims Reliance was in the list of 5-6 companies Future Group could not enter in deal with
Amazon, which holds a 49% stake in a Future Group arm, Future Coupons, has accused Future Group of breaching terms of a contract that stated that it would need the US e-commerce giant’s consent if it planned to raise money or sell a stake to another company. The agreement reportedly had a list of five to six companies, including Reliance Industries, that Amazon had drawn.
Reliance Retail remains unfazed
Late last year, Reliance Retail said that it intends to complete the transaction in accordance with terms of the deal and agreement with Future Group.
What did Delhi HC says
In a relief to Amazon, the Delhi HC said it is of the “clear view” that the emergency award (EA) by the Singapore International Arbitration Centre (SIAC) is enforceable in India. The EA had stayed the Future-RIL deal in October 2020. Amazon moved the Delhi HC recently to enforce the EA and stop Future from taking any steps to close the deal with RIL. Amazon had mentioned in its petition that Future was deliberately and maliciously ignoring the SIAC order to close the RIL deal by obtaining clearances from authoritie
Delhi HC: Need to protect the rights of the petitioner (Amazon)
The court said the immediate orders are required to protect the rights of the petitioner (Amazon).” “All the concerned authorities are directed to maintain status quo with respect to all matters in violation of the order dated 25th October, 2020, and shall file the status report with respect to the present status within 10 days of the receipt of this order,” said the order by Justice JR Midha.
Amazon says open to talks. Future says, ‘not interested’
During the court proceedings, Amazon had said that it was open to hold a discussion to resolve the ongoing dispute, but Future said it wasn’t keen on any such talks.
Future Group’s response to Delhi HC order
“The company will explore all legal remedies and take appropriate steps to pursue the scheme of the arrangement,” said the company’s spokesperson.
SEBI cleared RIL-Future deal on condition
TOI had reported last week that Future Retail had filed an application with the National Company Law Tribunal (NCLT) seeking approval for its deal with RIL. Market regulator Sebi gave conditional nod, while the Competition Commission of India (CCI) has cleared the deal.