Future Group filed these petitions to ensure that if Amazon files a case over the deal, it gets a chance to be heard before the court passes any order
Amazon had asked Future Group to pay INR 1,431 Cr plus interest which is the same amount that the etailer had in Future Coupons
Future Group had clarified that SIAC order is not enforceable under Indian law and is not binding on the company
The battle between two ecommerce giants- Future Group and Amazon doesn’t seem like ending anytime soon as the Future Group has filed two caveat petitions against Amazon in Delhi high court.
Kishore Biyani-led Future Group filed these petitions to ensure that if Amazon files a case over the deal, it gets a chance to be heard before the court passes any order.
This development comes after Amazon had asked Future Group to pay INR 1,431 Cr plus interest which is the same amount that the etailer had in Future Coupons.
Future Group had earlier clarified that Singapore International Arbitration Centre (SIAC) order to put the INR 24,713 Cr deal between Kishore Biyani’s Future Group and Mukesh Ambani’s Reliance Retail Ltd. on hold is not enforceable under Indian law and is not binding on the company.
With Reliance Retail’s decision to acquire Future Group, Amazon approached the Singapore International Arbitration Centre (SIAC), which rules on certain international trade disputes, claiming that Future violated a deal between itself and Amazon when it entered into an agreement with Reliance. The SIAC ruled in Amazon’s favour and ordered to put Reliance-Future deal on hold.
Meanwhile, Reliance also doesn’t want to stand down its foot as it said it entered the transaction to acquire assets and business of Future Retail “under proper legal advice and the rights and obligations are fully enforceable under Indian law. RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.”
After Amazon wrote to SEBI, BSE and NSE to take into consideration the Singapore arbitrator’s interim judgment, the Bombay Stock Exchange decided to consult SEBI to seek clarifications from Future Retail and Reliance Industries deal, following Amazon’s objections.
The Competition Commission of India (CCI) is also reviewing the online and offline aspects of the Reliance and Future Group deal and their impact on competition in the sector and the Reliance-Future Group deal also needs approval from CCI.
Billionaire Battle Royale
It’s not surprising that Amazon has had to dust off the boxing gloves in the rivalry with Reliance, which only intensified with the launch of Jio Mart earlier this year.
The ecommerce giant has invested over $6 Bn to build the ecommerce infrastructure in India, that not only is used by Amazon but other players too. It announced an infusion of additional $1 Bn earlier this year to go with its $5Bn commitment made in 2018.
In its July to September quarter earnings call, Amazon announced the expansion of its operations network with 10 new fulfillment centres, 5 new sortation centers, nearly 200 delivery stations, and over 100,000 seasonal jobs to help meet customer demand during the festive season.