Published 12:43 IST, December 21st 2020
Delhi HC rejects Future's plea for interim injunction against Amazon over Reliance deal
Delhi HC has refused to restrain Amazon from interfering in the Kishore Biyani-owned Future's deal with Reliance Retail by writing to statutory authorities.
The Delhi High Court on Monday declined to grant Kishore Biyani-led Future Retail Ltd's (FRL) plea for an interim injunction restraining e-commerce giant Amazon from writing to SEBI, CCI and other authorities about the arbitral order against its asset sale. Justice Mukta Gupta's order comes on Future's plea claiming that Amazon writing to the authorities about an emergency arbitrator's award amounts to interfering with the Rs 24,713 crore Reliance-Future deal.
The court also observed that the suit filed by Future Retail was maintainable, the Emergency Award was valid, and that Future Retail's resolution approving the transaction with Reliance was also valid. According to media reports, all findings are prima facie in nature.
The Singapore International Arbitration Centre (SIAC) on October 25 had passed an interim order in favour of Amazon barring FRL from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party. Subsequently, Amazon wrote to market regulator SEBI, stock exchanges and the Competition Commission of India (CCI), urging them to take into consideration the Singapore arbitrator's interim decision as it is a binding order.
On August 29 this year, the Future Group announced the 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. Amazon is indirectly a shareholder in Future Retail.
CCI clears Reliance-Future deal
Meanwhile, in November, the Competition Commission of India (CCI) approved RIL's proposed acquisition of retail, wholesale, logistics and warehousing businesses of Future Group. In a tweet, the regulator said it has approved "acquisition of retail, wholesale, logistics and warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited". Deals beyond a certain threshold require the approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.
Reliance buys Future Group
"Reliance Retail Ventures Ltd (RRVL), subsidiary of Reliance Industries, will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore," the company said in a statement. Future Retail operates 1,550 stores. Its flagship brands are BigBazaar, FBB and Foodhall, Easyday, Heritage Fresh and WHSmith. Future Lifestyle Fashion operates 354 stores.
(With PTI inputs)
Updated 12:43 IST, December 21st 2020