Apex Indian court halts Future Group's $3.4-bn deal on Amazon plea

23 Feb '21

1 min read

Pic: TK Kurikawa / Shutterstock.com

India’s Supreme Court yesterday stopped regulatory approval for the Future Group’s $3.4 billion asset sale to Reliance Industries, effectively halting the deal. Agreeing with the American e-commerce giant Amazon’s petition, the apex court overturned a lower court’s ruling and stopped India’s company tribunal from approving the transaction till further orders.

The court issued notices to Future Retail Ltd. seeking written statements on Amazon’s petition. Justice Rohinton F. Nariman who’s heading the two-judge panel said the court will hear the case again after five week, according to Indian media reports.

The decision is being widely perceived as another victory for Amazon, which wants to scuttle the transaction in its pursuit to dominate the country’s retail sector.

Amazon had secured an interim stay on the deal from a Singapore arbitration tribunal in October after accusing the Future Group of violating a partnership contract when it agreed to sell assets to billionaire Mukesh Ambani’s conglomerate last year.

Fibre2Fashion News Desk (DS)

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