Supreme Court will hear the matter on Monday, November 29.
On November 15th, CAIT filed a PIL in the Delhi High Court against Amazon’s investment into Future Coupons
CCI heard the counsels of Future Coupons and CAIT on November 24
The Supreme Court has agreed to hear Amazon’s plea against the Delhi High Court’s recent order directing the Competition Commission of India (CCI) to expedite its ruling in the Future Coupons issue.
The top court will hear the matter on Monday, November 29.
On November 16, the Delhi High Court directed the anti-trust body to decide and give a ruling on the pleas filed to revoke approval to the ecommerce giant’s investment in Future Coupons, following which Amazon on November 22 moved the apex court.
The High Court gave the directive in a petition filed by the Confederation of All India Traders (CAIT), which had also recently written to CCI seeking the annulment of its approval.
In its special leave petition (SLP), Amazon said that the recent order of the Delhi High Court directing the CCI to expedite its ruling has “severe implications” on the ongoing proceedings at several forums including the CCI and the Supreme Court.
Amazon alleged that — the petition has been presented as a public interest litigation (PIL) by CAIT, however, it is a “strategic ruse devised to help the respondents (Future Retail) in the aforesaid arbitration, orchestrated by them, with the sole objective of filibustering adjudicatory proceedings that are in motion”.
On November 15th, CAIT filed a PIL in the Delhi High Court against the Future Coupons investment in view of protecting 6,000 traders who had supplied goods to Future Group amounting to about INR 10,000 Cr.
In its plea, CAIT had said that Amazon’s investment into the Future Group company was granted based on the US appeal that traders should not be made a scapegoat or suffer any financial loss due to the fight between corporate giants.
Post the Delhi High Court’s directive, the CCI heard the counsels of Future Coupons and CAIT on the matter of Amazon’s investment into Future Coupons on Wednesday, November 24.
However, the counsel for Amazon did not argue or make oral submissions on the matter saying it may compromise the special leave petition filed with the Supreme Court. The Amazon counsel also made a grievance that the ecommerce major did not get sufficient time to file its rejoinder.
“Having heard the counsel(s), the Commission decided to pass an appropriate order in due course,” CCI said in its letter to Future Coupons.
Commenting on Amazon’s petition at the top court, Praveen Khandelwal, the National Secretary General of the CAIT said that: “CAIT strongly refutes baseless and unfounded charge of Amazon that CAIT filing case on behest of FCPL.”
Recent Letters To CCI
Apart from the traders’ body, the Independent Directors of Future Retail have written twice to the commission seeking annulment of its clearance to Amazon’s investment in Future Coupons made in 2019.
In its latest letter to the CCI, the Independent Directors said that the restrictions arising out of the 2018 Press Note 2 notification prohibited ecommerce marketplaces from exercising ownership or control over sellers’ inventory on their platform. This led to a change in the investment structure, with Amazon investing in a twin-entity investment structure through Future Coupons.
In its previous letter, the directors stated that Amazon “concealed facts, made misrepresentations to the CCI to seek approval for its investment in Future Coupons, a promoter holding company.”
Reiterating the directors’ statements, CAIT also wrote to the CCI, stating that the ecommerce major had made false statements. It had added that only a levy of penalty will not suffice and will be illegal.
Regardless of the Amazon-Future Group contract, Future Group in August 2020 announced a deal with Reliance Retail; Amazon took to the SIAC. Consequently, the Reliance – Future deal has been bitterly contested by Amazon through the Singapore Arbitration.
On November 8, the Mumbai bench of NCLT directed Future Group to not hold any meeting of creditors or shareholders on the proposed buyout by Mukesh Ambani led Reliance Retail.