Interim Relief To Amazon, Ban On Reliance-Future Deal
Interim relief to Amazon, ban on Reliance-Future deal, RIL said – Deal started under Indian law. Amazon received an interim relief on Sunday against its Indian partner Future Group.
A Singapore arbitration court has tentatively barred Future Group from selling its retail business to Reliance Industries Limited. Future Group has signed a deal of Rs 24,713 crore with Reliance.
Last year, Amazon agreed to buy a 49 percent stake in an unlisted company of the Future Group. Also, there was a condition that Amazon would have the right to buy the stake of Future Retail Limited after a period of three to 10 years.
On the other hand, Reliance Retail Ventures Ltd says that the process of acquiring the business and assets of Future Retail Ltd is completely under Indian law.
Reliance Retail Ventures Limited said that they had been informed of the interim order of the emergency intermediary.
Reliance said, “RRVL has initiated the process of acquiring the business and assets of Future Retail Limited only after appropriate legal advice, which is completely under Indian law.”
Meanwhile, debt-ridden Kishore Biyani’s group recently entered into an agreement to sell its retail store, wholesale, and logistics business to Reliance Industries.
Against this, Amazon has moved the court of arbitration. VK Rajah, the sole arbitrator in the case of Amazon vs Future vs Reliance Industries, delivered an interim judgment in favor of Amazon.
He asked Future Group to stop the deal for now. He said the deal cannot be reached until the arbitration court has reached a final decision on the matter.
An Amazon spokesperson also confirmed the arbitration court’s decision. He said that the arbitration court granted the relief sought by the company. He said that Amazon expects the arbitration process to be over.
An Amazon spokesperson said, “We welcome the decision of the emergency arbitrator. We are grateful for this order, which gives all the requisite relief. We are committed to a speedy resolution of the arbitration process.
Amazon believes that Future Group has breached the agreement with Reliance Industries. If the deal goes through, it would have helped Reliance almost double its presence in India’s retail sector.
A source said that a three-member arbitration court will take a final decision in the matter in 90 days.
