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Future Retail-Reliance Retail Ventures agreement: Amazon India writes to Sebi, bourses, asks not to okay deal

Amazon India has said that they must take cognisance of the interim order passed by an emergency arbitrator of the Singapore International Arbitration Centre (SIAC), barring Future Retail and its promoters from executing its deal with Reliance Retail.

Future builds Rs 1,000-cr war chest in arbitration battle with AmazonThe amount in the escrow account, which could later be raised to Rs 1,500 crore, is equal to the total investment made by Amazon in Future Coupons, the promoter group entity of Future Retail, the sources said.

Global e-commerce giant Amazon’s Indian arm has written to the Securities and Exchange Board of India (Sebi), the BSE and the National Stock Exchange (NSE), asking them not to approve the Future Retail-Reliance Retail Ventures deal, three people aware of the development told The Indian Express.

In its letter to the markets regulator and the two benchmark stock exchanges, Amazon India has said that they must take cognisance of the interim order passed by an emergency arbitrator of the Singapore International Arbitration Centre (SIAC), barring Future Retail and its promoters from executing its deal with Reliance Retail. The letter also mentions that the interim order passed by an emergency arbitrator of the SIAC had, apart from asking Future Group companies not to execute the deal announced on August 29, also said that these companies should not move any tribunal or courts in India or anywhere else, one of the persons said.

“The letter has also said that Sebi, BSE and NSE should be aware of the international repercussions that Indian businesses may face if an order passed by a tribunal such as SIAC is not followed in India,” another person said. A detailed questionnaire sent to Amazon India and the Future Group did not elicit any response.

On October 25, an emergency arbitrator of the SIAC had passed an interim order restraining Future Group and Reliance Industries Limited from proceeding with the Rs 24,713-crore deal signed in August for Future Retail to sell its retail, wholesale, logistics and warehousing units to Reliance Retail and Fashionstyle, until a permanent arbitration tribunal was constituted 90 days later.

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While the order was welcomed by Amazon India, Future Retail and Reliance Retail Ventures said they intended to go ahead with the deal as planned.

First published on: 30-10-2020 at 03:00:15 am
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