Future Retail said that it has received communication from Amazon.com that it has filed special leave petition before Supreme Court of India.
Future Retail announced on Wednesday (14 April) that its advocates are in receipt of communication dated 13 April 2021 from advocates of Amazon.com NV Investment Holdings (Amazon) informing that Amazon has filed a special leave petition before the Supreme Court of India against the captioned order dated 22 March 2021 passed by the division bench of the High Court of Delhi.Future Retail said that it will defend the matter/proceedings through its legal counsels.
The Delhi High Court bench on 22 March 2021 had removed the stay over Future Group proceeding with a Rs 24,713 crore deal with Mukesh Ambani's retail company. A division bench of the Delhi High Court on 22 March 2021 granted a reprieve to Future Group from a single-judge bench order passed on 18 March 2021, which restrained the Group from taking any steps about the sale of its assets to Reliance Retail.
Justice JR Midha on 18 March 2021 held that Future Group wilfully violated Singapore Arbitrator's order and directed it not to take further action on the deal. The court asked them to show cause as to why they shouldn't be detained for three months in civil prison for violating the emergency arbitrator's order. It also imposed Rs 20 lakh fine on Future Group and its directors.
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.
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.
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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.
Shares of Future Retail rose 1.17% at Rs 47.75 on Tuesday. Future Retail is engaged in the business of retailing a range of household and consumer products through departmental store facilities under various formats. The company is primarily engaged in the business of multi-brand retail trade.
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