BENGALURU: The ongoing saga of Future Group-Amazon tussle has witnessed a new twist. Hearing the case on Tuesday, after Future Retail Limited (FRL) filed a suit seeking injunction on the Singapore’s Arbitration award which is in Amazon’s favour, Harish Salve, senior lawyer on behalf of FRL told the Delhi High Court that American retailer is trying to kill the Future group by stalling the deal between FRL and Reliance Retail Ventures Ltd.
Salve added that since Amazon is bound by India’s Foreign Direct Investment rules (FDI) not to invest directly in FRL, which is a multi-brand retail firm, it is also not letting Reliance to salvage the debt-ridden Future group, which is badly in need of money. He further said that the emergency arbitration award doesn’t apply in India and FRL is under no binding to follow the same.
“The Law Commission wanted Section 2(1)(d) amended, one of the recommendations was to include an
Emergency Arbitrator but the Parliament didn’t include it. In any case if they assert the two agreements are to be dove-tailed into each other, then it has indirectly invested in us, in which case it has put FDI in multi brand retail and the agreements must be thrown out. Amazon invested Rs 1400 crore, it can be compensated by Biyanis,” Salve argued.
Amazon currently owns 49 per cent stake in Future Coupons Limited (FCL) which in turn has a 9.82 per cent shareholding in FRL. The e-tailer had earlier said that Future Retail’s sale of its retail, wholesale,
logistics and warehousing businesses for Rs 24,713 crore to rival Reliance violated a non-compete clause it had with the Kishore Biyani Group, when it bought 49 per cent stake in FCL with first right to more shares.
Reliance, which has been made a party to the suit filed by FRL told the court, that Amazon should not be allowed to stall the deal with Future retail and approach market regulators. The court has now asked Amazon to respond.