Delhi High Court Bans Deal Between RIL-Future Group
Delhi High Court bans deal between RIL-Future Group, know what is the whole matter.
The Delhi High Court on Thursday bans last year’s deal between Reliance Industries Limited (RIL) and Future Group.
Hearing the plea of US retailing giant Amazon Inc., High Court Justice JR Midha has asked Kishore Biyani-controlled Future Retail Ltd (FRL) not to take any further action on the deal.
The court admitted that the Future Group had deliberately violated the decision of the Singapore Arbitration Center.
Along with this, the court has ordered the confiscation of assets of Kishore Biyani and other directors of Future Group and asked them to appear in the court on April 28.
He has been issued a show-cause notice asking why he should not be sent to general custody for three months for not accepting the decision of the Singapore Emergency Arbitrator.
The Future Group and its directors have also been asked to deposit Rs 20 lakh in the Prime Minister’s Relief Fund as a penalty.
This amount will be used to vaccinate the corona vaccine to senior citizens who fall under the Below Poverty Line (BPL) category.
FRL, a branch of Future Group, had done most of its business deal with RIL company Reliance Retail Ventures Ltd (RRVL) for Rs 24,713 crore.
After the deal was struck in late August of last year, Amazon Inc. reached out to the Singapore-based Emergency Arbitration Center to stop it.
He said that he had bought a 49 percent stake in Future Coupons in the year 2019 with the condition that after three years and before 10 years he would get priority in buying more shares.
Future Coupons holds a little over seven percent stake in FRL. According to Amazon, Future Group has violated the agreement with Reliance by entering into a deal with it.
After the hearing of the case, the Emergency Arbitration Center of Singapore stayed the deal, ruling in favor of Amazon. Amazon filed a petition to stay the deal in the Delhi High Court citing the verdict.
There too, a single bench of the High Court ruled in favor of Amazon and stayed the deal, which the Future Group challenged in the High Court bench. The High Court bench overturned the decision of the single bench.
During this time, the Competition Commission of India (CCI), stock market regulator SEBI and several other regulators had given their approval to the Reliance-Future deal.
Meanwhile, the case also reached the Supreme Court, where it is yet to be heard. The Supreme Court has asked the regulators to continue to consider the merits of the deal, but not give any final verdict.
