Singapore panel puts Future-Reliance deal on hold

26 Oct '20

2 min read

Pic: Shutterstock

US e-tailer Amazon recently won an interim award from a single-judge arbitration panel in Singapore against its Indian partner Future Group selling its retail business to Reliance Industries Ltd (RIL) for ₹24,713 crore. Judge VK Rajah asked the Future Group to put the deal on hold, saying it cannot go through until the panel finally decides the matter.
Rajah is a former attorney general of Singapore.

Amazon had last year agreed to purchase 49 per cent of Future Coupons Ltd, one of Future's unlisted firms, with the right to buy into Future Retail Ltd after a period of three years to 10 years.

It had dragged the Future Group to arbitration after the indebted group signed an agreement with RIL’s retail arm Reliance Retail Ventures Limited (RRVL) to sell its retail, wholesale, logistics and warehousing units.

An Amazon spokesperson told a news agency that the arbitration panel has granted the reliefs sought by the company, which expects an expeditious conclusion of the arbitration process. Amazon believes Future Group violated the contract by entering into the deal with rival Reliance.

RRVL said it has been informed about the interim order passed by the emergency arbitrator and it intends to enforce its rights and complete the transaction in terms of the scheme and agreement with the Future Group without any delay.

Fibre2Fashion News Desk (DS)

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