Amazon Quicksight News – Big Victory For Amazon, Sc’s Stay On Reliance-future Deal, This Is The Whole Matter – Industrialist Mukesh Ambani’s Reliance Industries suffered a major setback on Friday. The Supreme Court today stayed the company’s deal with Future Group regarding the acquisition of Future Retail and ruled in favor of Amazon in the matter.
Amazon Quicksight News – Big Victory For Amazon, Sc’s Stay On Reliance-future Deal, This Is The Whole Matter
This is what the Supreme Court said
Hearing the case, Justice R. F. Nariman and B. R. Gavai said that the decision of the Emergency Arbitrator Court of Singapore is applicable in the country. The decision of the Arbitration Court of Singapore is in accordance with Section 17(1) of the Arbitration Law of the country and is applicable in the country under Section 17(2).
Why did the Supreme Court say
During the last hearing in the case, senior advocate Harish Salve, appearing for Future Retail, had questioned the validity of the orders of the Singapore arbitration court. In this regard, advocate Gopal Subramaniam, appearing for Amazon, told the bench that the decision of the arbitration court of Singapore prevents Future Retail from merging with Reliance Retail.
what happened before the deal
Before the Supreme Court in the case of Reliance-Future Deal, Amazon had moved the Delhi High Court to implement the Singapore International Arbitration Center (SIAC)’s decision of 25 October 2020. The Division Bench of the Delhi High Court had given permission to proceed with the Reliance-Future deal, which was challenged by Amazon in the Supreme Court and on Friday, the Supreme Court stayed the deal.
What is Reliance-Future Deal
After the Corona epidemic, Reliance Industries is making big bets regarding the country’s retail sector. Future Group is the second largest retail company in the country which owns big brands like Big Bazaar. The company has more than 1,700 stores across the country. After the Reliance-Future deal, Reliance would get the rights over the retail, warehouse and logistics business of Future Group. For this, in August 2020, a deal of Rs 24,713 crore was made between Reliance and Future Group.
American e-commerce company Amazon is also very interested in the country’s retail sector. The reason for the controversy surrounding the Reliance-Future deal is a 2019 deal with the Future Group. In this deal, Amazon acquired Future Coupon Ltd., a company of Future Group. bought 49% stake in Along with this, it also got the right to offer to buy the first stake in Future Group’s retail business. Future Coupon holds more than 9 percent stake in Future Retail.
In such a situation, when Future Retail decided to sell its business to Reliance, Amazon opposed it. Amazon says that since it has a stake in Future Coupon, the group cannot take a one-sided decision to sell Future Retail. Regarding this, Amazon went to the arbitration court of Singapore, which ruled in favor of Amazon in October 2020.
Shock to Reliance
The Supreme Court’s ban on Reliance-Future Deal is a big setback for Reliance Industries. This is likely to create difficulties for the company’s future plans regarding the retail sector. The final decision of the Singapore Arbitration Court is yet to come in this matter.