Future Retail moves Delhi High Court against promoters

Future Retail’s deal with Reliance stuck in arbitration

New Delhi: Future Retail Limited (FRL), along with its promoters, has approached the Delhi High Court against the orders passed by the Singapore International Arbitration Center (SIAC) last week relating to its deal with Reliance.

The Singapore Tribunal had refused to consider Future Group’s request to conclude the arbitration proceedings before the final hearing begins this week on December 30, 2021.

“The company has filed a writ petition before the High Court of Delhi under Articles 226 and 227 of the Constitution of India … challenging the orders of December 29, 2021 and December 30, 2021 passed by the Arbitral Tribunal at Singapore International arbitration centre,” Future Retail said in a regulatory filing.

A single-member bench of Justice Amit Bansal of the Delhi High Court has reserved till Tuesday its order on the petitions filed by Kishore Biyani-led Future Group entities – Future Retail, and Future Future Coupons Pvt Ltd (FCPL) and its promoters. Is.

In August 2020, Future Group had announced a deal worth Rs 24,713 crore for the sale of retail and wholesale business and logistics and warehousing segments to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Ltd.

However, its e-commerce company Amazon is opposing the deal through its 49 per cent stake in FCPL, which is a shareholder in Future Retail.

In the deal, the Competition Commission of India (CCI), in an unprecedented move, revisited its two-year-old approval given to Amazon to acquire a stake in Future Coupons, through which the global e-commerce major can claim rights. It’s on Future Retail.

On December 17, CCI had suspended its approval for Amazon’s deal to acquire stake in Future Coupons Pvt Ltd and also imposed a fine of Rs 202 crore on the e-commerce major for certain violations.

In October 2020, an interim award was passed by EA (emergency arbitrator) in favor of Amazon, asking FRL to take any steps to dispose of or liquidate its assets or to secure any funding from a restricted party. was barred from issuing any securities.

Last month, SIAC had also upheld this and said that FRL is a party to the ongoing arbitration between Amazon and Future Group in the dispute over the sale of its assets to Reliance Retail.

At present the matter is in dispute before the Supreme Court and SIAC.

Reliance Retail Ventures for the second time extended the deadline to March 31, 2022 to complete the Rs 24,713 crore deal with Future Group, as it still awaits regulatory and judicial approval.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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