Future Retail files fresh case against Amazon over $3.4 bn deal: Report

Future Retail files fresh case against Amazon over $3.4 bn deal: Report

FPJ Web DeskUpdated: Saturday, August 28, 2021, 10:19 PM IST
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Future Retail Ltd (FRL) reported widening of its consolidated net loss at Rs 1,147.28 crore for June quarter 2021-22, impacted by the second wave of the pandemic/ Representational image |

Future Retail has filed a fresh case in Supreme Court against Amazon.com Inc to seek clearance for its $3.4 billion retail assets sale.

On Saturday, Future Retail Ltd (FRL) filed a new case against Amazon.com Inc at the Supreme Court in its latest effort to seek clearance for its $3.4 billion retail assets sale, which the US firm has challenged, Reuters said.

In a big win for e-commerce giant Amazon, this month, the Supreme Court ruled the order of a Singapore-based emergency arbitrator (EA) that restrained (FRL) from going ahead with its asset sale deal with Reliance Retail was enforceable in India.

US-based e-commerce giant Amazon, and FRL are embroiled in a legal fight over FRL's Rs 24,713 crore asset sale deal with Reliance Retail.

FRL had said it intended to pursue "all available avenues" to conclude its Rs 24,731-crore deal with Reliance Industries after the Supreme Court ruled in favour of Amazon and upheld Singapore's Emergency Arbitrator (EA) award that had restrained the said transaction.

The Future Group company noted that the Arbitral Tribunal at the Singapore International Arbitration Centre (SIAC) has concluded hearings on the questions that whether the interim award of the EA should continue and whether FRL is at all a party in the arbitration proceedings.

"The decision of Arbitral Tribunal is awaited," it added.

In August last year, Reliance Retail Ventures Ltd (RRVL) had said it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group for Rs 24,713 crore. The scheme of arrangement entailed the consolidation of Future Group’s retail and wholesale assets into one entity Future Enterprises Ltd and then transferring it to Reliance Retail.

The deal has been contested by Amazon, an investor in Future Coupons that in turn is a shareholder in Future Retail Ltd. In August 2019, Amazon had agreed to purchase 49 per cent of one of Future's unlisted firms, Future Coupons Ltd (which owns 7.3 per cent equity in BSE-listed Future Retail Ltd through convertible warrants), with the right to buy into the flagship Future Retail after a period of three to 10 years.

Amazon had dragged Future into arbitration at SIAC and in October, an interim award was passed by the EA in favour of the US e-commerce major that barred Future Retail from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party.

Amazon and the Future Group had also filed litigations in Indian courts, including the Supreme Court, on the issue.

The apex court ruled in favour of Amazon by holding that the EA award was valid and enforceable under Indian laws.

The Supreme Court's order came over a petition filed by Amazon that had challenged an earlier order of the Delhi High Court.

"We welcome the verdict of the Hon’ble Supreme Court of India upholding the Emergency Arbitrator's award. We hope that this will hasten a resolution of this dispute with Future Group," Amazon said in a statement.

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