Amazon has been handed a major legal victory in its fight to block a $3.3 billion deal between Reliance Industries and Kishore Biyani-led Future Retail.

Delhi High Court ruled on Tuesday that an agreement by Reliance Industries to purchase local rival Future Retail for $3.3 billion should be put on hold after Amazon objected to it last year. The Delhi High Court said it was "satisfied that immediate orders are necessary to protect the rights of [Amazon]" and ordered all parties involved in the deal to "maintain status quo" pending its final judgment.

"We have utmost respect for the Indian legal system and appreciate the interim order of the ... Delhi High Court," an Amazon spokesperson told CNN Business.

AMAZON.COM NV INVESTMENT HOLDINGS LLC, who is the petitioner has filed this petition under Section 17(2) of the Arbitration and Conciliation Act, 1996 read with Order XXXIX Rule 2A of the Code of Civil Procedure for enforcement of the order dated 25th October, 2020 passed by the Emergency Arbitrator.

Future Retail said in a statement that it would "explore all legal remedies and take appropriate steps to pursue" its deal with Reliance. The company could potentially challenge any judgment in a higher court.

Reliance declined to comment.

According court ruling, Amazon said that it has invested Rs.1431 crore on the clear understanding that respondent No.2 (Future Coupon Pvt Lt) would be the sole vehicle for its retail business and its retail assets would not be alienated without Petitioner’s consent and never to a Restricted Person, including the Mukesh Dhirubhai Ambani Group (“MDA Group”).

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.