Reliance-Future deal
Kishore Biyani-led Future Group challenges Delhi High Court's order prohibiting deal with Reliance Retail
New Delhi/IBNS: Kishore Biyani-led Future Group has challenged the ruling of Delhi High Court's single-judge bench, upholding Singapore International Arbitration Centre's order that restrained Future Retail Ltd's (FRL) Rs 24,713 crore deal with Reliance Retail, a deal that was opposed by US-based e-commerce giant Amazon, media report said.
The appeal filed on behalf of FRL by advocate Harshvardhan Jha will be heard on March 22 by a bench of Chief Justice DN Patel and Justice Jasmeet Singh, according to a BusinessToday.In report.
On March 18, Justice JR Midha ruled that Kishore Biyani-led Future Retail wilfully violated the ruling of Singapore arbitrator and directed it to not take forward Rs 24,713 crore deal.
The High Court asked the Future Group and its directors to show cause why they should not be detained for three months for violating the earlier ruling of Singapore arbitrator under the civil provisions.
The group's directors were fined Rs 20 lakh and asked to deposit the money to the Prime Minister's Relief Fund to provide Covid-19 vaccine to financially disadvantaged senior citizens.
It also asked Kishore Biyani and directors to be present in the court for the next date of hearing on April 20.
The high court gave its order after Amazon approached it with the request to enforce Singapore International Arbitration Centre's October 25, 2020 order that restrained the sale of Future Group's retail assets to Reliance Retail.
Background
On August 29, 2020, Future Group had announced the sale of its retail and wholesale assets to Reliance Retail Ltd for Rs 24,713-crore.
In August 2019, Amazon had bought 49 per cent stake in Future Coupons for Rs 1,500 crore.
Amazon has alleged that the 2019 Future-Reliance deal t indirectly owned about a 3.5 per cent stake in Future Retail.
Amazon said its 2019 deal with Future Group prevents it from selling the shares of Future Retail to RIL, its biggest rival in India, as the world's biggest e-commerce platform indirectly owns about a 3.5 per cent stake in Future Retail.
On October 25, 2020, it won an injunction to halt the sale from a Singapore arbitrator that both the entities had agreed to use in case of dispute.
The Court had written to BSE and SEBI to uphold the ruling.
Later, Amazon sent a legal notice to Future Coupons over its deal with Reliance.
In January, the Securities Exchange Board of India (SEBI) cleared the Rs 24,713 crore retail asset sale of Future Group to Mukesh Ambai-led Reliance Industries with conditions.
Future Group must specifically mention the case pending before the Delhi High Court and arbitration proceedings by the global e-commerce major Amazon contesting the deal, SEBI directed while issuing the clearance in January, 2021.
The Bombay Stock Exchange (BSE) had also granted its "no adverse observation" report, it added.
"The letters issued by BSE & NSE clearly state that comments of SEBI on the "draft scheme of arrangement" (proposed transaction) are subject to the outcome of the ongoing arbitration and any other legal proceedings. We will continue to pursue our legal remedies to enforce our rights," Amazon spokesperson had said post the development.
In December 2020, the Delhi High Court quashed Future Group's petition seeking its directive restraining Amazon from interfering in the asset sale to Reliance.
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