Amazon vs Future Retail: E-comm giant moves SC against the deal after blow in the lower court In an ongoing legal battle between Jeff Bezos-led Amazon Inc and Kishore Biyani’s Future Retail Group, the e-com giant has challenged the sale of retail assets worth Rs 24,713 crore to Mukesh Ambani-led Reliance Retail Limited.
Amazon vs Future Retail
Amazon vs Future Retail India Today Logo Amazon vs Future Retail: E-com giant moves against SC after giving shock in the lower court
In an ongoing legal battle between Jeff Bezos-led Amazon Inc and Kishore Biyani’s Future Retail Group, the e-com giant has challenged the sale of retail assets worth Rs 24,713 crore to Mukesh Ambani-led Reliance Retail Limited.
A man is standing in front of a shop: Amazon vs. Future Retail: The e-com giant stepped up against SC after a setback in the lower court. © India Today Group Amazon vs Future Retail: E-com giant slams SC against this deal lower court
According to Amazon, Future violated its contract with the company by signing a retail asset sale agreement with Reliance Industries in 2020. However, future promoter Kishore Biyani has denied any of these wrongdoings and accused Amazon of “playing like a dog”. The multinational e-commerce giant engages in a huge legal battle with Future Retail Limited (FRL).
The latest action by Amazon comes against the backdrop of the Delhi High Court which is slamming Amazon by canceling the previous court order on staying the deal.
The Delhi High Court also turned down Amazon’s request to hold it for a week so that it could seek appropriate remedies.
The court also issued a notice to Amazon and sought its favor on the FRL’s appeal until 26 February, when it would begin a day’s hearing of the case. Although Amazon and Future did not comment on the latest petition, Reuters confirmed the sources saying the e-com giant had filed a petition in the Supreme Court.
On February 2, a single bench of Justice JR Middha stayed the Future Group deal with Reliance Industries following Amazon’s objections.
The court passed the order while hearing Amazon’s petition on an emergency award passed by the Singapore International Arbitration Center (SIAC), which prohibited Reliance from selling retail assets in the future.
The basis of the legal battle between Amazon and Kishore Biyani’s Future Retail lies in an agreement between the two companies in August 2019. Amazon had agreed to buy 49 percent of one of Future’s unlisted firms – Future Coupons Limited – with the right to buy into major Future retail after a period of three to ten years.
Future Coupons has a 7.3 percent stake in BSE-listed FRL, which operates popular supermarkets and hypermarket chains such as Big Bazaar through convertible warrants.
In August 2020, Future entered into an agreement to sell its retail, wholesale, logistics, and warehousing units to Reliance Retail Ventures Ltd (RRVL), which operates RIL’s retail business – for Rs 24,713 crore. In October, Amazon approached SIAC, alleging that Future Group breached the contract by entering into a deal with rival Reliance and seeking to halt the deal with the Mukesh Ambani-led company.