American e-commerce giant Amazon on Sunday, 25 October, won an interim order against its partner Kishore Biyani’s Future Group. The arbitration panel has restrained the Future Group from selling the retail business to Mukesh Ambani’s Reliance Industries for Rs 24,713 crore, reported news agency PTI.
“We welcome the award of the Emergency Arbitrator. We are grateful for the order which grants all the reliefs that were sought. We remain committed to an expeditious conclusion of the arbitration process,” an Amazon spokesperson told BloombergQuint.
Amazon alleged that the Future Group violated the contract by entering into the deal with Reliance, reported PTI.
Earlier in August, the Future group announced the sale of its retail, wholesale and logistics to Reliance Retail Ventures.
The Amazon team was represented by Gopal Subramanium, Gourab Banerji, Amit Sibal and Alvin Yeo, reported PTI.
An order issued by an emergency arbitrator of Singapore International Arbitration Centre (SIAC) states that the order will be valid for the next 90 days until an official arbitration panel is appointed, The Indian Express reported.
RIL Releases Statement
After the order, Reliance Retail Ventures in a statement said, “RRVL entered the transaction to acquire assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian law.”
The statement also mentioned that RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future Group without any delay, reported CNBC.
In 2019, Amazon bought 49 percent stake in one of Future Group’s unlisted firms, it provided them with the right to buy into flagship Future Retail after a period between three to ten years.
Earlier on 16 October, the hearing was concluded by the arbitration panel at Singapore International Arbitration Centre.
(With inputs from PTI, The Indian Express, CNBC, and BloombergQuint)