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Amazon communicates with SEBI for cancellation of Future Reliance Deal

Legal Correspondent: Pranami Baruah


August 31, 2021: Amazon communicates with Securities and Exchange Board of India (SEBI) seeking revocation of the approval given by the market regulator to Rs.25.000 crore Future Retail and Reliance Industries’ deal. In a letter to SEBI chief Ajay Tyagi, the e-commerce giant has cited the recent Supreme Court order that stalled the deal. An interim award was passed by the Singapore International Arbitration Centre (SIAC) in favour of Amazon was also upheld by the Supreme Court. The Amazon said that in purview of the directions contained in the enforcement judgment and the emergency arbitration order, the validity which have been asserted by the Supreme Court and hence Amazon requests to take necessary actions complying with the judgment by the Supreme Court. It requested SEBI to direct the Indian Stock Exchanges withdrawing the observation letters with immediate effect.

In 2019 conflict arose between Amazon and Future Group when the former invested Rs. 1,400 crore with Future Coupon Private limited (FCPL) and executed agreement according to which assets could not be sold to restricted parties which included Reliance industries. Due to pandemic a huge downturn was faced by Future Retails for which they had to sell their assets to reliance industries. But it was contested by Amazon at SIAC which passed order in favour of Amazon. However SFuture Retail filed fresh case in Supreme Court for clearance deal.


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