Future Group -Reliance Retail deal put on hold as Amazon wins interim relief in Arbitration Proceedings

Biznextindia : Global retail giant Amazon has won an interim order against partner Future Group selling its retail business to Reliance Industries (RIL) subsidiary Reliance Retail Ventures Limited (RRVL).  The order, passed in a Singapore-based arbitration panel on October 25, has effectively puts a pause to the Future-RIL deal.

RRVL, in August, announced the acquisition of the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group for INR 24,713 crore. However, Amazon had taken the case to the panel alleging violation of contract by Future group.

Meanwhile, RRVL in a statement said that it is informed of an interim order passed by the Emergency Arbitrator in the arbitration proceedings invoked by Amazon. The company intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.

“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” RRVL said.

“RRVL has entered into the transaction for acquisition of assets and business of Future Retail Limited under proper legal advice and the rights and obligations are fully enforceable under Indian Law. RRVL intends to enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay” it added.