Setback for Reliance Industries and Future Group as the deal put on hold by Singapore Court. Let me tell you that Amazon has filed a case against this deal in Singapore court. Amazon received an interim relief on Sunday in their case against Indian partner Future Group. A Singapore arbitration court has tentatively barred Future Group from selling its retail business to Reliance Industries Limited. Future Group has signed a deal of Rs 24,713 crore with Reliance to sett its retail business in India.
Let me tell you that Amazon agreed to buy a 49 per cent stake in an unlisted company of the Future Group last year. Also, there was a condition that Amazon would have the right to buy the stake of Future Retail Limited after a period of three to 10 years. Meanwhile, debt-ridden Kishore Biyani’s Future Group recently signed another deal with Reliance Industries. As per the new agreement, they agree to sell their retail store, wholesale and logistics business to Reliance Industries. Immediately after this announcement, Amazon moved the court of arbitration against this deal in Singapore.
Arbitration court decision in favour of Amazon is a Setback for Reliance Industries and Future Group
VK Raja, the sole arbitrator in the case of Amazon vs Future Group vs Reliance Industries, delivered an interim judgment in favour of Amazon. He ordered Future Group to stop the deal for now. He said the deal cannot move ahead until the arbitration court reached on its final decision in this case. An Amazon spokesperson also confirmed about arbitration court’s decision. He said that the arbitration court granted the relief sought by the company. He said that Amazon expects the arbitration process to be over very soon.
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The Amazon welcomes the decision of the emergency arbitrator. They are grateful for this order, which gives all the requisite relief. They said that they are committed to speedy resolution of the arbitration process. Amazon believes that Future Group has breached the agreement by signing another agreement with Reliance Industries. This decision of Singapore court is a set back for Reliance industries. Because Future Group addition to Reliance Industries many have doubled their retail presence in India.
Reliance Industries will continue the acquisition process of as per Indian Law as per sources
Meanwhile, Reliance Retail Ventures Ltd (RRVL) said that they have been informed of the interim order of the emergency arbitrator. They said, RRVL has initiated the process of acquiring the business and assets of Future Retail Limited only after appropriate legal advice, which is completely under Indian law. They may continue to do so as per Indian law and complete the acquisition process asap.
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A source said that a three-member arbitration court will take 90 days for the final decision in this case. The final decision-making committee will have one member from Future Group and one from Amazon and one neutral member. As per sources, the Amazon’s case was presented by Gopal Subramanian, Gaurav Banerjee, Amit Sibal and Alvin Yeo. Harish Salve stood in favour of Future Retail giants them. Earlier, the arbitration court completed the hearing on 16 October at the Singapore International Arbitration Center.
