Amazon.com won an interim order against partner Future Group selling its retail business to RIL after the e-commerce company took the case to a Singapore-based arbitration panel, alleging violation of contract by the Kishore Biyani-owned group. As per the deal, Future Retail signed off stake to Reliance Retail Ventures (RRVL) in August 2020.
Reliance Retail Ventures Limited (RRVL) is informed of an interim order passed by the emergency arbitrator in the arbitration proceedings invoked by Amazon under a shareholders’ agreement with the promoters of Future group, said a company release.
RRVL 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. RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.
The company is not a party to the agreement under which Amazon has invoked arbitration proceedings and legally advised that the company’s actions are in compliance with relevant agreements, CNBC-TV18 reported Future Retail as saying.
Singapore Arbitrator order will have to be tested under provisions of the Indian Arbitration Act and will take steps to ensure the deal with Reliance Retail proceed without any delay, it added.
Reliance Industries is to announce its September quarter earnings on October 30, 2020.
The share touched its 52-week high of Rs 2,368.80 on September 16, 2020 and 52-week low of Rs 867.45 on March 23, 2020.
At 0927 hours, Reliance Industries was quoting at Rs 2,081.05, down Rs 31.50, or 1.49 percent on the BSE.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.