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Big setback to Reliance-Future Group, Supreme Court rules in favour of Amazon
The court said that the decision taken by the Emergency Arbitration (EA) of Singapore to stay the deal in the emergency hearing in October will be applicable in India as well.
New Delhi: America's e-commerce company Amazon has got a big victory from the Supreme Court. In fact, the Supreme Court has upheld Amazon's appeal on the deal between Reliance and Future Group.
The court said that the decision taken by the Emergency Tribunal (EA) of Singapore to stay the deal in the emergency hearing in October will be applicable in India as well.
Let us tell you that there was a deal of more than 24 thousand crores between Future Group and Reliance Retail. Amazon has objections to this deal. Amazon has questioned the deal, citing its stake in Future Group's coupons.
What Amazon said:
Amazon had told the court that the Singapore Emergency Arbitration (EA)'s decision to restrain Future Group from the merger deal with Reliance Retail is 'valid' and should be implemented. In this case, senior advocate Harish Salve, Future Group and senior advocate Gopal Subramaniam, argued for Amazon.
Amazon challenged the decision of the Delhi Court:
Amazon challenged the decision of the Division Bench of the Delhi High Court, which cleared the way for the Reliance-Future Group deal, in the Supreme Court.
Amazon had argued in court that the Biyani family of Future Group had negotiated with it to make some compromises. They are bound to abide by EA's decision barring Future Group from proceeding with the merger deal with Reliance Retail.
Amazon has a problem with the ownership of the deal of Reliance and Future Group. Amazon had a 49 percent stake in Future Coupons, a company of the Future Group. According to the deal between Amazon and Future Group, if the company is sold, Amazon will have the first right of purchase, but this was not followed in the Reliance-Future Group deal.
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