Future Retail: A breather
Shares of Future Retail jumped over 10% after Delhi High Court lifted ‘Status Quo’ order.
The Delhi High Court has stayed the Single Judge Bench order directing “Status Quo” of Future Retail (FRL) -Reliance Deal. As per the order issued by the court, Amazon had no reason to seek a status quo order, when it wasn’t interested in the deal.
Interestingly, several statutory bodies such as the Securities and Exchanges Board of India (SEBI) and Competition Committee of India (CCI) were not present before the Delhi High Court.
However, the Delhi High Court could not have restrained statutory authorities such as SEBI.
The Court also observed that statutory authorities cannot be restrained in private litigation from acting in accordance with the law.
The Kishore Biyani led Future Group’s Rs 24,713 crore deal to sell its retail assets to Reliance Retail, was stalled by its partner Amazon.com Inc.
which had challenged the sale. The court’s decision is the latest twist in the Future Group saga, coming after the court last week sided with Future’s partner Amazon.com Inc’s challenge and put Future’s asset sale to Reliance Industries on hold, which led to an appeal from the retail group.
Amazon’s Jeff Bezos argued that Future breached certain 2019 contracts by agreeing to the deal with Reliance. Future has denied any wrongdoing.
Amazon has argued in the courts that an October decision by an arbitrator who had put the Reliance deal on hold is enforceable. Future has maintained that its retail unit was not party to the arbitration agreement and the order was not binding on the company.
Future Group, the country’s second largest retailer with over 1,700 stores, had agreed to sell its retail businesses to market leader Reliance last year.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.