- The appeal comes after Future Group says that Singapore-based arbitration court order is not permissible under the Indian laws.
- Last year, Amazon had bought 49% stakes in Future Coupons Ltd. (Future Group unlisted firm).
- Future Retail Ltd. said Amazon had asked Future Group to pay Rs 1,431 Crore.
Future Group subsidiary Future Retail said Amazon had asked Future Group to pay Rs 1,431 Crore (or about $192 million) as penalty along with interest for the RRVL-Future deal, which is the same amount Amazon had invested in Future Coupons last year.
Future Group told the bourses that Amazon’s request should be approved by the Singapore arbitration court or any other judicial forum. The company further said, The promoters of Future Retail will be able to pay the total amount and there would not be any financial impact on the company.
The announcement comes when Future Group wrote a letter to the stock exchange mentioning that the Singapore-based arbitration court order to put the RRVL-Future deal on hold is not enforceable under the Indian laws.
On October 25, a Singapore-based arbitration court ordered to put RRVL-Future deal worth Rs 24,713 crore (or about $3.3 billion) on hold.
Last year, Amazon had bought a 49% stake in Future Coupons Ltd. (Future Group unlisted firm) for Rs 1,431 crore (or about $200 million), giving an indirect stake of around 7% in Future Retail. and had signed a non-compete contract.
On October 8, Amazon sent a legal notice to Future Group over its deal with rival Reliance Retail for about Rs 24,713 crore.
In August this year, Reliance Retail signed a deal with Future Retail to buy its wholesale, logistics, and other business operation for Rs 24,713 crore.
“The proposed scheme is the only way, it can come out of the situation; the scheme is in the best interest of all stakeholders, that includes shareholders, financial institutions, vendors and suppliers, and more importantly employees, etc,” the company said.
The company further said, the Singapore arbitration court does not restrict Indian bourses and SEBI in any manner from considering or approving the development, and hence asked them to issue a no-objection letter allowing the deal to be filed before the National Company Law Tribunal.
“Amazon’s claims are being “motivated by other considerations”. “It is a bit rich for such an argument to be made from someone who is not even a shareholder in Future Retail,” the company added in a regulatory filing.