Reliance Retail & Future Group Deal: Mukesh Ambani’s Reliance Retail has received a major setback. A Singapore-based arbitration court has ruled in favor of Amazon over a deal with Future Group. The arbitration court, in an interim order, has banned Future Group from selling its retail business to Reliance Industries Ltd for Rs 24,713 crore. Let us tell that Future has taken the arbitration court after Kishore Biyani-led company decided to sell its retail business to Reliance Industries.
VK Raja, the sole arbitrator in the case of Amazon vs Future vs Reliance Industries, has given an interim judgment in favor of Amazon. He told Future Group to stop the deal for the time being. He said that until the arbitration court has reached the final decision in this case, the deal cannot be done.
An Amazon spokesperson also confirmed the arbitration court’s decision. He said that the arbitration court granted the relief sought by the company. The spokesman said that Amazon expects the arbitration process to be completed at a faster pace. We welcome the decision of the emergency arbitrator. We are grateful to this order, which gives all the requisite relief. We are committed to speedy resolution of the arbitration process.
What does Reliance Retail say
Reliance Retail issued a press release stating that Reliance Retail Ventures Limited (RRVL) has transacted for the acquisition of the assets and business of Future Retail, with proper legal advice and fully applicable under Indian law. Reliance said on the verdict that it has entered into an agreement with Future Group to enforce its rights and complete the transaction in the context of the scheme.
What is the matter?
Amazon had issued a legal notice to Future Group alleging that the retailer had violated the agreement with the e-commerce company by selling assets worth Rs 24,713 crore to Reliance Industries. The case was heard on 16 October at the Singapore International Arbitration Center.
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