Amazon, Future Urges SEBI Over RIL Deal

• Amazon has asked SEBI to wait for the final judgment from SIAC before approving the Future-RIL deal.
• Future Group has also urged SEBI to seek approval for its deal with Reliance Retail (RRVL).
• Last week, The Delhi High Court had rejected Future Retail’s plea to stop Amazon from writing to SEBI, CCI, and bourses about the deal.

The argument between Amazon and Future Retail continues as e-commerce giant Amazon has asked SEBI (The Security Exchange Board Of India) to wait for the final judgment of SIAC before approving the Future-Reliance Retail (RRVL) deal.

Meanwhile, Future Retail has also urged SEBI to review and approve its deal with Reliance Retail Ventures Limited (RRVL).

Earlier in November 2020, Future Retail had filed PIL (Public interest litigation) to ensure that if Amazon passes any plea over the $3.4 billion Future-Reliance Retail deal, it gets a chance to be heard before the court passes any order.

However, The Delhi High Court last week had rejected Future Retail's plea for an interim injunction restricting Amazon from writing to SEBI, CCI (The Competition Commission Of India), and stock exchanges about the deal with Reliance Retail.

The court also said that the statutory authorities are free to make a decision as per Indian laws. It had also noted that the Future-RRVL deal was in full accordance with the Indian laws.

In a letter to SEBI, Amazon said that the SIAC order is valid under India's arbitration law by the Delhi High Court. Hence, the Future Group's entities must wait till the Singapore-based SIAC gives a final judgment.

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"The Delhi high court has also made it clear that no observations were passed concerning the merits of the interim award. Consequently, all findings contained in the interim award, including the finding that FRL is a necessary and proper party to the arbitration proceedings, continue to be valid," Amazon mentioned in the letter. Mint reported.

In December 2019, Amazon bought a 49% stake in Future Coupons Ltd. (Future Group unlisted firm) for Rs 1,430 crore (or about $200 million) signed a non-compete contract.

Due to the COVID-19 pandemic, Future Retail ran into heavy revenue losses, to stay afloat, it decided to sell some of its businesses to Reliance Retail for Rs 24,713 crore (or about $3.4 billion).

Later on, Amazon claimed that by entering into a deal with Reliance Retail, Future Group is breaching the non-compete contract that it signed last year.

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