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Arbitration Panel Rejects Future's Plea On Reliance Deal In Dispute With Amazon

Amazon has been locked in a tussle with Future and accuses it of breaking contracts when it sold its retail assets to Indian market leader Reliance last year. Future denies any wrongdoing.

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A Singapore arbitration panel has rejected Future Retail’s request to cancel an order last year that suspended its $ 3.4 billion deal with Reliance, a boost for its partner Amazon. com Inc which seeks to block the transaction. 

Amazon has been locked in a tussle with Future and accuses it of breaking contracts when it sold its retail assets to Indian market leader Reliance last year. Future denies any wrongdoing.

After the Singapore arbitrator suspended the deal in October 2020 in an interim decision, Future appealed to revoke it. The panel rejected the request, Future said in a statement to the Indian stock exchanges on Friday.

“The arbitral tribunal has issued a decision rejecting the request for annulment of the provisional award,” said the statement from Future. “The company would decide its future course of action based on the legal advice and remedies available in law.”

The dispute began after Future, India’s second-largest retailer with more than 1,700 stores, struck a deal last year to sell its retail, wholesale, logistics, and some other businesses to Reliance, after that COVID-19 has hit its operations hard.

Amazon intended to own some of Future’s retail assets on its own. He argued that a 2019 deal he had with a Future unit contained clauses prohibiting the Indian group from selling its retail assets to anyone on a “restricted” list that included Reliance.

Amazon has filed a lawsuit against Future before a Singapore arbitration panel, and the dispute is also ongoing in various Indian legal forums.

(Reuters)


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