Reliance retail. Future-Reliance deal: Arbitration award is valid and must be enforced, Amazon tells SC

Our Bureau Updated - July 21, 2021 at 10:17 AM.

Amazon wants the Reliance-Future Group deal scuppered

FILE PHOTO: Small toy figures are seen in front of diplayed Amazon logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Amazon India on Tuesday told the Supreme Court that the award given by Singapore International Arbitrator (SIAC) against the Future-Reliance deal is “valid,” and must be enforced.

The counsels appearing on behalf of Amazon said Future Retail’s ₹24,713-crore deal with Reliance Retail was arbitrary.

The e-commerce giant had acquired a stake in Future Retail’s (FRL) sister concern Future Coupons Private Limited (FCPL) in 2019 for ₹1,400 crore. Under the deal, Amazon argued that Future Retail could not enter into an agreement with Reliance.

Amazon later dragged FCPL and FRL to SIAC where the emergency arbitrator (EA) passed an interim award in favour of the former. To implement the same, Amazon moved the Indian court last year.

On Tuesday, Amazon lawyers argued that Future Retail Limited (FRL), is bound by the Future Coupon Private Limited (FCPL) agreement, being its parent company. “Amazon’s FCPL investment was subject to terms and conditions. FRL was prohibited from selling its business to restricted persons. Mukesh Ambani was a restricted person,” said a source.

The top court will now hear the matter on July 22. According to sources, Justice Nariman, who is currently hearing the case is retiring on August 13. Hence, it is likely that the case will now be on speed track.

Published on July 20, 2021 15:42