The decision of the arbitration committee has come on the appeal of Amazon challenging the deal between Future Group and Reliance Industries. Amazon is relieved in the judgment, while Reliance Retail has been barred from signing a deal with Future Group. A Singapore-based arbitration court in an interim order prohibited Future Group from selling its retail business to Reliance Industries Ltd for Rs 24,713 crore.
Future Group has taken the arbitration court after Amazon decided to sell its retail business to Reliance Industries by the Kishore Biyani-led company. VK Rajah, the sole arbitrator in the case of Amazon vs Future vs Reliance Industries, delivered an interim judgment in favor of Amazon.
He asked Future Group to stop the deal for now. He said the deal cannot be reached until the arbitration court has reached a final decision on the matter.
Subsequently, in a press release, Reliance Retail gave information about the interim order of the arbitration committee. Also stated that Reliance Retail Ventures Limited (RRVL) have transacted for the acquisition of the property and business of Future Retail with proper legal advice and is fully applicable under Indian law.
Reliance said in a release regarding the decision that it has entered into an agreement with Future Group to enforce its rights and complete the transaction in the context of the plan.
The Rs 24,713 crore deal between Future Group and Reliance Industries was challenged by Amazon in an arbitration court. Mukesh Ambani's company has received a big blow about this.
An Amazon spokesperson also confirmed the arbitration court's decision. An Amazon spokesman said the arbitration court granted the relief sought by the company. He said that Amazon expects the arbitration process to be over. An Amazon spokesperson said that 'we welcome the decision of the emergency arbitrator. We are grateful for this order, which gives the expected relief to all. We are committed to a speedy resolution of the arbitration process. '
What is the matter?
Amazon had issued a legal notice to Future Group alleging that the retailer violated the agreement with the e-commerce company by selling its assets worth Rs 24,713 crore to Reliance Industries. The case was heard on 16 October at the Singapore International Arbitration Center.