- Earlier this month, Amazon had sent a legal notice to Future Group for violating the contract agreement by entering into a deal with Reliance Retail.
- On October 25, a Singapore-based single-judge arbitration panel put the deal Reliance-Future deal on hold.
Amazon.com Inc. on October 25 won temporary relief against its partner Future Group for selling its business to Reliance retail arm Reliance Retail. The order was passed by a Singapore-based single-judge arbitration panel, effectively putting the deal between Reliance and Future group on hold.
Earlier this month, Amazon.com Inc. had sent a legal notice to Kishore Biyani’s Future Group for violating the contract agreement by entering into a business deal with Reliance Retail.
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.
As per the reports, Through this deal, Future Group was engaged to sell its wholesale, retail, logistics, and other businesses to Reliance Retail for Rs 24,713 crore (or about $3.3 billion), directly violating the non-compete contract.
Commenting on the development, V.K. Rajah (Singaporean-attorney) had asked the Future Group to put their business deal with Reliance Retail on hold till the court understands the whole scenario and decides the matter.
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The arbitration panel has granted the relief sought by it and expect an expeditious conclusion of the arbitration process,” said an Amazon spokesperson on behalf of the company.
Sources said a three-member arbitration panel, with Future and Amazon appointing one representative each and a third member being a neutral umpire, would decide on the dispute in the next 90 days.
During the appeal, the Amazon team was represented by Gopal Subramanium, Gourab Banerji, Amit Sibal, and Alvin Yeo. While Future Retail side was represented by advocate Harish Salve, said another source.
Earlier on October 16, the hearing was concluded by the arbitration panel at Singapore International Arbitration Centre.
Currently, Reliance Retail operates India’s largest and fastest-growing retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart.
About Future Group – Future Group is an Indian conglomerate founded in 2013 by Kishore Biyani. Future Group owns Future Retail, BigBazaar, Hypercity, Future Generali India Insurance, and many more brands.
Future Group subsidiary has more than 1500 offline retail stores in 437 cities across the country.
(with inputs from PTI (press trust of India)
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