After a quiet few months, activity on the legal battle between U.S. e-commerce giant Amazon and Kishore Biyani’s Future Group has picked up.
Arbitration proceedings in Singapore will resume next week. Back home, the battle has moved to the Supreme Court before a three-judge bench of Justices RF Nariman, KM Joseph and BR Gavai.
Amazon.com NV Investment Holdings LLC has alleged that the Rs 27,513-crore deal between Mukesh Ambani’s Reliance Retail Ltd. and Future Group violates its contractual rights.
In 2019, Amazon had invested in Future Group by acquiring a 49% stake in Future Coupons Ltd. — a promoter entity of Future Retail. Future Coupons holds 9.82% in Future Retail. At the time, Future Coupons and Future Retail had also entered into a shareholders’ agreement.
As per the SHA, Amazon has stated, Future Retail requires prior approval from Future Coupons on certain matters namely transfer or licence of all or substantially all of its assets or material assets; transfer of assets above a certain threshold to a related party; amendment of articles of association in conflict with the terms of the shareholders’ agreement, etc.
Broadly, Amazon has argued that its approval is required for the deal between Future Retail and Reliance Retail Ventures Ltd.