Amazon gets interim relief as arbitration panel puts Future-Reliance deal on hold
The Kishore Biyani-led group had signed an agreement to sell retail, wholesale, logistics and warehousing units to Reliance Retail Ventures Limited.
E-commerce giant Amazon on Sunday got a favourable ruling in connection with a deal between Future Group and Reliance Industries Limited, reported Mint. A single-judge arbitration panel in Singapore put the deal, worth Rs 24,713 crore, on hold for now.
Justice VK Rajah asked the Future Group to put the deal on hold and said that the pact cannot go through until it finally decides the matter. A three-member arbitration panel will decide on the dispute in 90 days, according to NDTV.
Amazon had filed a plea against its partner Future Group selling retail business to Mukesh Ambani’s Reliance Industries. In August, the Kishore Biyani-led group had signed a pact to sell retail, wholesale, logistics and warehousing units to Reliance Retail Ventures Limited. Last year, Amazon had agreed to purchase 49% of one of Future’s unlisted firms with the right to buy into flagship Future Retail Ltd after a period of three years to 10 years.
According to Amazon, Future Group violated the contract by entering into the deal with rival Reliance. Following this, Amazon sent a legal notice to Future Group.
“We welcome the award of the Emergency Arbitrator,” said an Amazon spokesperson. “We are grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process.”
Reliance Retail Ventures Limited, the retail arm of RIL, said the transaction to acquire assets and business of Future Retail Limited was made under proper legal advice. “RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay,” said the firm.
RRVL operates about 12,000 stores in nearly 7,000 towns, with 640 million footfalls. Revenues of Reliance Retail in 2019-’20 financial year stood at Rs 1.63 lakh crore.