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In a setback for Amazon, the Competition Commission of India (CCI) has approved the acquisition of retail, wholesale, logistics, and warehousing businesses of the Future Group by Reliance Retail Ventures Ltd and Reliance Retail and Fashion Lifestyle Ltd.
CCI announced the decision on Twitter on Friday. "Commission approves acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited," it said.
Amazon had approached the Emergency Arbitrator in Singapore seeking relief in the Future-Reliance Retail deal.
The proceedings against Future Retail Ltd (FRL) are not maintainable as FRL is not a party/signatory to the arbitration agreement invoked by Amazon, the company had said.
In a regulatory filing, the company said that FRL's jurisdictional objections are pending determination with the SIAC Registrar.
Further, the SIAC has appointed an Emergency Arbitrator, however, the Indian law does not recognize an Emergency Arbitrator. "Accordingly, the Interim Order is unlikely to have an impact either on the FRL or the Company," it said.
It said that notice of Arbitration has been issued by Amazon against FRL and other FRL promoter group persons in accordance with the Singapore International Arbitration Centre ("SIAC") Rules for alleged violation of the provisions of the shareholders agreements.
Further, as per SIAC Rules, Amazon has filed an application seeking interim relief, injuncting the Respondents from giving effect to the Composite Scheme of Arrangement.
"There would not be any change in status of the proposed scheme until the Interim Order passed by the Emergency Arbitrator of SIAC is executed by the Indian court of appropriate jurisdiction," the company said
Future Group's retail and wholesale undertaking will be transferred to Reliance Retail and Fashion Lifestyle Ltd (RRFLL) which is a wholly-owned subsidiary of RRVL.
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