Lawstreet Journal

The Future Group Asked to Put a Hold on Deals Made with Reliance till the Dispute Between Amazon and the Former is resolved

Lawstreet Journal 27 Oct 2020 11:54pm

Image courtesy: Lawstreet Journal Business The Future Group Asked to Put a Hold on Deals Made with Reliance till the Dispute Between Amazon and the Former is resolved

The arbitration proceedings between Amazon and Kishore Biyani-headed FutureGroup took place last week in Singapore at the Singapore International Arbitration Centre. The matter was heard by former Singapore Attorney-General V K Rajah as an emergency arbitrator on October 16. 

The case started when Amazon sent a legal notice to Future, alleging the retailer’s Rs 24,713-crore asset sale to Reliance Industries Ltd breached an agreement with the American e-commerce giant.

The case was that in 2019, Amazon made a deal with Future Retail worth Rs 2000 crore to acquire a 49 percent stake in the promoter firm of Future Retail i.e., Future Coupons. The said deal had few conditions including a “non-compete” clause and “right of first refusal” (RoFR) clause, which meant Future could not sell its shares without approval from Amazon. The RoFR gave Amazon the right to be the first to invest in Future Retail if Future decided to sell its shares. But there is another clause that mentioned that the Future could not sell its assets without Amazon’s approval.

On August 29, 2020, the Future announced its deal with Reliance in which it announced the sale of its retail, wholesale and logistics, etc to Reliance Retail Ventures Ltd (“RRVL"), the retail arm of RIL.

On this deal, Amazon approached the Tribunal for interim relief under Rule 30 of Singapore International Arbitration Centre Rules, 2016, and alleged that Future Group violated the contract by entering into the deal with rival Reliance.

Amazon was represented by Gopal Subramanium, Gourab Banerji, Amit Sibal, Alvin Yeo, Amit… Continue Reading...

Tagged: Reliance Industries   Reliance Industries Limited   Amazon  
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