US e-commerce giant Amazon is set to approach the Singapore International Arbitration Centre seeking to halt the ₹25,000-crore deal between Future Group and Reliance Retail. Amazon had alleged that the deal violates a 2019 agreement on several counts and is against the interest of Future Retail’s shareholders.

“This deal between Future Group and Reliance Retail is anti-shareholder because none of the shareholders will get anything as Reliance has technically bought assets of Future Enterprise, the holding company,” said a source close to Amazon. “Future was required to seek Amazon’s permission. Amazon has the first right of refusal in the event of stake sale by Future. This also violates a non-compete clause in the 2019 agreement,” the source added.

Amazon sends legal notice to Future Group for deal with Reliance Retail

Law firms roped in

The source said the contract allows for arbitration. Amazon has appointed law firms and the arbitration will be outside India, most likely in Singapore, the source said.

When contacted, an Amazon spokesperson said, “We have initiated steps to enforce our contractual rights. As the matter is sub-judice , we can’t provide details.”

Future Group declined to comment but sources close to the group said that they are willing to talk and prefer mediation.

Amazon has served a legal notice alleging violation of an agreement done in August 2019 when it had picked up 49 per cent stake in Future Coupons Ltd, which owns 7.3 per cent of Future Retail. That deal gave Amazon roughly 3.6 per cent in Future Retail. Biyani had also agreed to certain share transfer restrictions on the promoter shares in the company for the same tenure, including restrictions to not transfer shares to specified persons and, more importantly, a right of the first offer in favour of Amazon.

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