Court declines Future Group’s plea against Amazon

The court also said that Future Retail’s resolution approving its transaction with Reliance was valid.

The development follows Amazon’s objection to Future Group’s retail asset sale to Reliance Industries, as the US ecommerce giant claims that the deal had breached an agreement it made with Future Group in 2019.

In November, Future Retail’s plea to be excluded from being a party to the Amazon-Future Coupons’ arbitration proceedings had been turned down by the court of the Singapore International Arbitration Center (SIAC).

The high court’s order states that the SIAC did not have jurisdiction over the matter.

The Delhi high court also permitted Future Retail to proceed with the sale of its assets to a unit of Reliance Industries, leaving it to regulators to decide the fate of the deal, while allowing Amazon.com Inc. to approach appropriate forums to oppose the transaction.

Meanwhile, the Competition Commission of India approved the Future Group-Reliance Retail deal last month, dealing a blow to the US-based retailer.

Reliance Group’s acquisition of Future Group’s assets saved the latter from billion-dollar debts after coronavirus-induced lockdowns worsened its already strained financial position.

The retail market size in India is expected to reach US$1.7 trillion by 2026, up from US$950 billion in 2018, according to estimates by Statista.

Future Group and Reliance Retail also compete with Avenue Supermarts’s DMart in the Indian retail space.

Update (December 23, 12:55 pm): This article was updated to include the court’s permission to proceed with Future Retail’s sale of assets to a unit of Reliance Industries.