The Singapore International Arbitration Centre (SIAC) noted that Amazon had expressly singled out Reliance as a restricted company and both Future Retail and Amazon had agreed to this investment parameter.
on August 29, 2020, the Future group had announced the sale of its retail, wholesale and logistic units to Reliance Retail Ventures Limited, the retail arm of the Reliance Industries, following which Amazon is locked in a bitter legal dispute with the Future Group.
Amazon also asked SEBI to “suspend review” of the deal while adding that it will lose the prospect of becoming the single largest shareholder of the Future Group.
Amazon, in its agreement with Future Coupons, barred 15 companies including Reliance Industries, Walmart, Google and Zomato from buying into Future Group's retail assets.
Now, at this position, both Amazon and Reliance Industries reacted to the arbitrator's decision by saying they want to complete the deal "without any delay", setting the stage for a showdown between Reliance and Amazon -- each led by one of the world's richest men.
Some Indian lawyers have also argued the Singapore arbitrator's order in favour of Amazon is not automatically enforceable and would need ratification by an Indian court. But Amazon believes the order is binding, it told SEBI in a letter and asked the regulator to "suspend review" of the deal.
India's Future Retail Ltd (FRL) will go into liquidation if its deal to sell assets to Reliance Industries fails. Now a question is on how Mukesh Ambani is going to handle the situation smartly.
