Leading e-commerce website Amazon.com has now approached the Supreme Court against the Future Group-Reliance deal. It has been said in a report by the news agency Reuters. According to the agency report, three sources gave this information to the company on Thursday. In this way, Amazon has intensified its efforts to block the deal between its partner Future Group and Reliance Industries. Amazon says that Future Group has violated the terms of the contract with Reliance Industries by announcing it to sell its retail business. However, Future Group continues to deny these allegations.
Amazon had filed a petition in the Delhi High Court to stop the deal. However, they suffered a major setback from the High Court recently. After this, the US company has filed a petition in the Supreme Court. Reuters has given this report, quoting three sources.
What exactly happened?
In August 2020, Future Group announced to sell its retail, wholesale and other businesses to Reliance Industries for Rs 24,713 crore. After this, the whole incident started. The deal was opposed by Amazon, saying that the deal between Future Group-Amazon in 2019 stipulated that the Indian company, Future Group, could not sell its retail business to anyone on the list of banned individuals, including Reliance Industries.
Amazon challenged the matter at a Singapore-based arbitration forum, where they got interim relief from the arbitration forum. Amazon then filed a petition in the Delhi High Court that the arbitration forum’s decision to hold the Future-Reliance deal should be implemented. Subsequently, a single bench of the Delhi High Court ruled in favor of Amazon. However, a bench of two judges overturned the High Court verdict on Monday. After this, Amazon has now approached the Supreme Court.
So what will be the effect of a decision in this case
India’s retail marketplace is expanding rapidly. Now giants from all over the world want to dominate the marketplace. The decision of the legal battle over the deal related to the retail business of Future Group will give a new direction to the future of the Indian retail market. This is the reason why all analysts with an eye towards this deal.