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Last Updated : Oct 26, 2020 04:21 PM IST | Source: Moneycontrol.com

Reliance deal cannot be held back, Future Retail not a party to Amazon agreement: Future Group

Future Retail Limited said the order would have to be tested under the provisions of Indian Arbitration Act in an appropriate forum.


Future Retail Limited said that it was not a party to the agreement under which Amazon had invoked arbitration proceedings and the decision to sell the retail business to Reliance Industries was in compliance with the agreements signed with Amazon. Amazon, on October 25, won an interim award, which put the RIL-Future Group deal on hold.

Future Retail Limited (FRL) said in a statement that it had received a communication from the Singapore International Arbitration Centre (SIAC), enclosing an interim order of the Emergency Arbitrator in the arbitration proceedings under shareholders’ agreement between Amazon, Future Coupons Private Limited and the promoter group.

"FRL is examining the communication and the order. It may be noted that FRL is not a party to the agreement under which Amazon has invoked arbitration proceedings," the statement read.

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The company further said that the actions taken by the FRL are in full compliance of the relevant agreements and the deal "cannot be held back in arbitration proceedings initiated under an agreement to which FRL is not a party."

Read: Amazon wins interim relief; Future-Reliance Retail deal put on hold

FRL said the order would have to be tested under the provisions of Indian Arbitration Act in an appropriate forum.

"FRL would take appropriate steps to ensure that the proposed transaction will proceed unhindered without any delay," it said.

Amazon holds a 49 percent stake in Future Coupons Pvt. Ltd, which in turn gives it a stake in Future Retail. The e-commerce giant thus dragged Future to arbitration after the indebted group firm signed a pact to sell its retail, wholesale, logistics, and warehousing units to billionaire Mukesh Ambani's RIL on August 29, 2020.

Passing an interim award in favour of Amazon, VK Rajah asked Future group to put the deal on hold and said that the deal cannot go through until it finally decides the matter.

Meanwhile, Reliance Industries Ltd said that it plans to complete the transaction with Future Group "without any delay".

"Reliance Retail Ventures Limited (RRVL) has entered into the transaction for the acquisition of assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian Law," it said.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
First Published on Oct 26, 2020 10:51 am
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