Amazon has used the terms of the deal to accuse Future Group of breach of contract. Amazon wants to prevent its rival Reliance from buying Future. In the year 2019, Amazon invested $ 200 million (about Rs 1,485 crore) in Future Retail. At the same time, talks have been made between Reliance and Future to buy Future Retail for $ 3.4 billion (about Rs 25,640 crore). Amazon is against this deal.
The turning point in the matter came in the recent times when the country’s antitrust agency, the Competition Commission of India, suspended the 2019 deal, saying Amazon suppressed information while seeking approvals.
The long-running dispute is being heard by a Singapore arbitration panel, but both sides are also fighting in Indian courts to enforce or overturn certain decisions taken by the panel.
Now, in its latest filing in the Delhi High Court, Future Retail has argued that the 2019 deal is now suspended. It has “no legal existence” in India. Amazon can no longer claim any of its rights. In its filing dated 31 December 2021, Future Retail has sought to invalidate the proceedings of the Singapore Arbitration Panel.
Future and Amazon did not respond to comments sought by Reuters on the latest developments. Future Group’s appeal to the Delhi High Court comes after a Singapore arbitration panel disagreed with its demands to quash the proceedings in the matter. There the debate on this matter will continue this month.
A source with knowledge of the matter told Reuters that Amazon told a Singapore arbitration panel in December that suspending the 2019 deal does not mean the transaction between it and Future Group is zero.
what is the whole matter
The deal was signed in the year 2019 between Future Group and Amazon, which runs more than 1500 supermarkets and outlets across the country. Future Retail was in heavy debt at that time. Then Amazon invested $ 200 million (about Rs 1,485 crore) in Future Retail. This was followed by a deal between Future Retail and Reliance. In this deal, talks have been made to buy Future Retail for $ 3.4 billion (about Rs 25,640 crore). Amazon argues that this deal is in violation of the deal between it and Future Retail. The Arbitration Panel of Singapore is hearing the matter. Future and Amazon are also fighting the case in India’s court. Meanwhile, the Competition Commission of India has suspended the deal between Future and Amazon, which has shocked Amazon.