On August 29 this year, the Future Group announced sale of its
retail and wholesale business to Reliance Retail in a Rs 24,713 crore deal
The Delhi High
Court will pronounce its verdict on Future Retail Ltd’s plea to restrain Amazon
from writing letters to regulators against its asset sale with Reliance
Industries. The court had reserved its verdict for today on November 20.
On August 29 this
year, the Future
Group announced sale of its retail and wholesale business to Reliance
Retail in a Rs 24,713 crore deal. It announced plans to merge key group
companies, including Future Retail, Future Lifestyle Fashions, Future Consumer,
Future Supply Chains and Future Market Networks into FEL.
However, the Jeff
Bezos led company argued that a 2019 pact it signed with Future prevented the
Indian company from selling its retail assets to certain parties. It had also
won an interim award against the transaction between RIL and the Future group
after a Singapore-based single judge arbitration panel put the transaction on
hold.
The Future plea
sought to restrain Amazon
from interfering in the Reliance Retail-Future deal on the basis of an interim
order passed by the Singapore International Arbitration Centre (SIAC). Amazon
had taken Future Retail into an emergency arbitration over alleged violation of
contract.
Meanwhile, the
Competition Commission of India (CCI) cleared the Future-Reliance deal in
November saying, "Commission approves acquisition of retail, wholesale,
logistics & warehousing businesses of Future Group by Reliance Retail Ventures
Limited and Reliance Retail and Fashion Lifestyle Limited." The online
giant had claimed before the CCI that the so called "injunction" of
the Emergency Arbitrator was binding on CCI and that CCI should stop processing
the application and should not give its approval.
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