The Delhi High Court said that the regulators should take a decision on the Future-Reliance retail deal.
The path of the country’s largest retail deal is becoming clear. On Monday, the Delhi High Court has taken a big decision in the Future Group and the Amazon dispute case.
- Last Updated:December 22, 2020, 12:43 AM IST
Interim ban on group deal
In October, a Singapore arbitration court granted an interim stay on the Reliance and Future Group deal (FRL Deal). The Delhi High Court has ordered the regulators to decide on the dispute that the matter will be resolved under Indian law and order. The Delhi High Court admitted that the FRL board resolution approving the Reliance deal is valid and at first glance seems to be in accordance with the statutory provisions. Amazon called it invalid.
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The High Court, in its 132-page order, also said that Amazon violated the rules of FEMA and FDI. Amazon tried to control the FRL by making various compromises, which cannot be justified. The court said that if Future and Reliance have suffered due to the antics of Amazon, then action can be taken on it. Now the ball is in the court of SEBI, NCLT and other regulators. He has got the green signal to take a decision on this matter.
CCI has already approved the FRL deal
The Competition Commission of India (CCI) had earlier approved the deal of Reliance Industries and Future Group on 20 November, after which the two companies got involved in finalizing the deal. The American giants e-commerce company Amazon was dealt a major blow with the decision of CCI. Reliance Retail Ventures Limited (RRVL), a subsidiary company of Reliance Industries, announced the acquisition of Future Group’s retail and wholesale business and logistics and warehousing business in August 2020. After this deal, Reliance has access to over 1,800 stores spread across 420 cities of the Future Group. Let us know that this deal was finalized for Rs 24,713 crore.