Shares of Future Group companies tumbled after Delhi High Court upheld the order by Singapore International Arbitration Centre prohibiting its deal with Reliance Retail.
Among the Future Group stocks, Future Retail (down 10%), Future Lifestyle Fashions (down 10%), Future Consumer (down 10%) and Future Enterprises (down 9.74%) declined.Mukesh Ambani-led Reliance Industries (RIL) was up 0.60% at 2021.50.
The single judge of the Delhi High Court, justice JR Midha, on Thursday (18 March 2021), held Kishore Biyani and his company Future Retail guilty for violating the 2 February 2021 order, which had directed that status quo be maintained on the Group's Rs 24,713-crore deal with RIL's Reliance Retail.
The bench of Justice JR Midha held that Kishore Biyani-led Future Group wilfully violated Singapore Arbitrator's order and directed it not to take further any action on the deal.
The Singapore International Arbitration Centre's (SIAC), on 25 October 2020, had passed an interim order in favour of Amazon, restraining Future Group from proceeding on the deal.
The Delhi High Court on Thursday directed the presence of Biyani and others before it on 28 April and has ordered attachment of properties of Biyani and others related to the Future Group. It also imposed Rs 20 lakh cost on Future Group and its directors and ordered that the amount should be deposited in Prime Minister's Relief Fund for providing COVID-19 vaccines to senior citizens of Below Poverty Line (BPL) category.
The high court also asked them to show cause as to why they be not detained for three months under civil prison for violating the Singapore arbitrator's order.
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In August 2020, RIL announced the acquisition of retail & wholesale business and logistics & warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore through its subsidiary Reliance Retail Ventures (RRVL).
In August 2019, Amazon had bought 49% stake in Future Coupons for Rs 1,500 crore. The US-based e-commerce giant said that the 2019 deal blocks Future Group from selling shares of Future Retail to rival RIL as it indirectly owned about 3.5% stake in Future Retail.
In January this year, Amazon had moved the Delhi High Court challenging Future Group-RIL deal. The Delhi HC had upheld the emergency arbitration award from SIAC that was in favour of Amazon's and ordered a status quo. The status quo direction was subsequently stayed by a division bench of the High Court. Amazon's appeal against the stay order on status quo is presently pending before the Supreme Court.
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