Future Retail Limited (FRL) has filed a petition in the Delhi High Court seeking to declare illegal the arbitration proceedings against it at the Singapore International Arbitration Center (SIAC). This action against Future Retail has been filed by the giant American e-commerce company Amazon.
Future Group had announced a deal to sell its physical stores and warehouses to Reliance Industries Limited (RIL) for Rs 24,500 crore. There is a legal battle between Amazon and Future Group regarding this deal. Amazon has filed a case against the deal in the Singapore Arbitration Tribunal. Apart from this, both the companies are also fighting a legal war against each other in India.
Future Group had earlier also filed a writ before the Singapore Arbitration Tribunal seeking quashing of the ongoing hearing against it. However, the tribunal, in a judgment given on December 29, rejected his plea. After this, Future Group has now filed a petition in the Delhi High Court.
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Future Retail Limited (FRL) has said in its petition that the Competition Commission of India (CCI), the country’s entry trust agency, has suspended the deal between it and Amazon in 2019. In such a situation, his deal with Amazon is no longer legal.
Let us tell you that in the year 2019, Amazon bought a 49 percent stake in Future Coupons Pvt Ltd (FCPL) in a deal worth 1,400 crores. Amazon claims that the deal also had a provision that it would have a veto power to decide to whom Future Retail would sell its assets.
When Future Retail announced to sell its assets to Reliance, Amazon objected to it, calling it a breach of contract terms. Amazon also dragged Future Group for a legal battle on the same basis.
However, on December 17, CCI suspended its deal with Future Group in a big blow to Amazon. Along with this, CCI has also imposed a penalty of Rs 200 crore on Amazon in this case. The CCI said in its order that Amazon concealed the “real purpose and details” of the 2019 deal and “made false representations and attempted to suppress material facts”. The CCI said the deal now “needs to be re-examined” and until then the relevant approvals “will remain suspended.”
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