The Singapore International Arbitration Centre (SIAC) has passed an interim order asking Future Group to hold its plans to sell its retail business to Reliance Group and wait for the final judgment on the plea filed by Amazon.
As per an Economic Times report, Amazon had filed an arbitration petition with SIAC claiming that Future Group breached the contract under which the US online giant took an indirect stake in its retail business in 2019. The proposed deal between Future Group and RIL does not have its approval and hence should not go through.
SIAC in its order also asked Amazon to submit a proposal within a week, outlining its plans for Future Retail in case the outcome is in its favor. The interim order is valid for 90 days and SIAC will issue its final verdict in this period.
Reliance Industries said it entered into the transaction for acquisition of assets and business of Future Retail under proper legal advice and the rights and obligations are fully enforceable under Indian Law.
Amazon indirectly owns a 5 per cent stake in Future Retail — which houses all food and grocery stores such as Big Bazaar and Easyday — through a 49 per cent shareholding in promoter holding firm Future Coupons that it bought for Rs 1,500 crore last year.