Stepping up its attack on global e-commerce giant Amazon, Future Retail (FRL) on Thursday said every development in its arbitration with the former would not be “a material event for disclosure under” under section 30 of the listing obligations and disclosure requirements (LODR) regulations of the Sebi.
FRL was, however, making the disclosures “out of abundant caution” as Amazon, the other party in the arbitration had adopted a media strategy of “having every development reported and converted into a line of communication with stock exchanges”.
In its disclosure on Thursday, Future Retail said though it was not a party to the arbitration agreement, the Singapore International Arbitration Centre (SIAC) had made it a party to the agreement through an order. FRL had, therefore, “raised jurisdictional objection to its inclusion as party to the arbitration”. On Wednesday, the SIAC had dismissed plea of FRL to be excluded from being a party to arbitration.
In August, Kishore Biyani’s Future Group entered into an agreement with Reliance Retail — an arm of Reliance Industries — to sell its retail, wholesale, logistics and warehousing assets to the latter. However, the Rs 24,713-crore deal ran into trouble with Amazon claiming its “contractual rights” have been violated. Last year, FRL had signed another deal worth Rs 2,000 crore with Amazon, as part of which Amazon had acquired 49 per cent stake in Future Coupons, the promoter of FRL.
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