On the basis of an interim order which had been passed by the Singapore International Arbitration Centre, Reliance Retail- Future Deal filed a plea in the High Court of the Capital, in order to retrain Amazon in participating/interfering in its future business.
Last year, in August, Amazon bought some 49 percent of shares in one of the unlisted firms of Kishore Biyani’s Future Group, Future Coupons Ltd. (FCL), cutting the deal by procuring the Right to Buy into the listed company, Future Retail Ltd., also led by Mr. Kishore Biyani, in a few years, if the government were to undo the bar that has been placed on Foreign Ownership of Multi-Brand Retailers.
Unfortunately, Future Groups’ listed company, Future Retail Ltd. had run into a severe cash crunch after a nationwide lockdown was imposed in an attempt to curb the Covid-19 outbreak. Due to this, the firm cut a deal with Reliance Industries Ltd. (RIL) to sell its assets for some Rs. 24,713 cr.
With respect to this, Amazon took the issue with the Future Group, to SIAC, claiming that the contract signed and agreed upon between the two enterprises restricted transactions of FCL with few companies, including Reliance Retail Ltd. Amazon also wrote to markets regulated by SEBI and Stock Exchanges, urging the two to take into consideration the order which has been passed by the Singapore Arbitrator’s interim judgement that put a halt on the deal which Future Group cut out with the Reliance Retail Ltd. of Rs. 24,713 crores, while reviewing the proposed transaction.
The Future Retail Ltd. registered a plea in the Delhi High Court, looking for seeking relief from the conundrum that Amazon has been causing and from Amazon, from interfering in the deal which the Future Groups have cut out with the Reliance group. In the plea, FRL also claimed that Amazon is misusing the interim order that has been passed by the Singapore Arbitrator.
During the hearing, Delhi High Court, on Monday, declined to offer any relief to the Future Group. Further, the court said that it won’t grant FRL an interim injunction, restraining Amazon from writing to SEBI, CCI, and other authorities about the arbitral order against its asset sale.
The order was passed by Justice Mukta Gupta.
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