SC To Deliver Judgment In Amazon-Future-Reliance Case Today; Know All About Rs 24,713 Cr Deal Dispute

The dispute centers around Future's decision to sell its retail, wholesale, and other businesses to Reliance. Here's all you need to know about the case put up by Amazon.

Supreme Court of India | File Image

The Supreme Court will today deliver its judgment in the Amazon-Future-Reliance case. The top court will pronounce its decision on whether Singapore's Emergency Arbitrator Award restraining Future Retail Ltd from going ahead with its merger deal with Reliance Retail is valid under Indian law and if it can be enforced.

In February this year, Billionaire Jeff Bezos-led Amazon had filed a legal case against its partner Future Group for selling Rs 24,713 crore retail assets to Mukesh Ambani-led Reliance Retail in the Supreme Court.

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Amazon had challenged the Delhi High Court order which had stayed the implementation of status quo direction passed by a single judge of the High Court to the Future-Reliance deal.

The dispute centers around Future's decision to sell its retail, wholesale, and other businesses to Reliance for Rs 24,713 crore, including debt.

In August 2019, Amazon had invested in Future Coupons, with the option to buy into the flagship Future Retail after three to ten years, claimed the e-commerce giant.

Amazon argues that a separate 2019 deal with the Future Unit had clauses stating that the Indian group could not sell its retail assets to anyone on the "restricted persons" list, including Reliance.

Kishore Biyani-led Future Retail, India's second-largest retailer with more than 1,700 stores, had stated that it would be pushed towards liquidation if the proposed deal with Reliance remained unconcluded.

The US e-commerce giant had argued in the Delhi High Court that the decision of the arbitrator who suspended the Future-Reliance Agreement in October was enforceable.

Previously, while a single-judge bench of the Delhi High Court had ruled in favor of Amazon - effectively blocking the deal, that decision was overturned by a two-judge bench later.

Amazon has been escalating the legal dispute with Future Group in its effort to block the deal, claiming that the Indian firm has violated contracts by agreeing to sell its retail assets to Reliance Retail last year, a charge denied by Future Group.

It is believed that the final outcome will have a major impact on the Indian shopping sector and will also determine Amazon's position in the country's market against its rival Reliance Retail.