Delhi HC to Pronounce Verdict on Future Group's Plea Against Amazon Today

Business Standard Delhi HC to pronounce verdict on Future Group's plea against Amazon today

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 FutureReliance 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.