Block Future-Reliance Deal, Detain CEO Biyani: Amazon to Delhi HC

Amazon requested Future’s $3.4 billion retail asset sales deal to be blocked & sought detention of the company’s CEO

Amazon.com Inc requested partner Future Group’s $3.4 billion retail asset sales deal to be blocked by Indian courts.

(Photo: Shruti Mathur/The Quint)

In a court filing, Amazon Inc filed a petition in Delhi High Court requesteing that partner Future Group’s $3.4 billion retail asset sales deal to be blockedsought the imprisonment of the company’s CEO, according to Reuters.

The US giant has appealed to the Delhi High Court to enforce the decision of the Singapore International Arbitration Centre (SIAC). In a report by Reuters, the arbitrator had earlier issued an order putting Future’s deal with Reliance on hold.

Amazon’s court filing claims Future has purposely gone against the order without challenging it, Reuters reports. The hearing will most likely be this week.

The filing also reiterated that disobeying the arbitrator’s order is the equivalent of violating a court order and urged the court to imprison Future Group CEO Kishore Biyani and others involved in the case for a civic violation.

Reuters added that Future Group was made aware of the court filing by Amazon lawyers and will defend itself in court.

Biyani’s assets will be attached to the case, upon Amazon’s request, to ensure no fraudulent activity takes place, states the Reuters report.

While Amazon claims Future violated the arbitrator’s order and certain pre-existing clauses in its deal with Reliance, the Indian group maintains that the interim order was not binding and should be ratified by an Indian court.

Amazon argues that the Indian company cannot rely on any regulatory approval it may receive, keeping in mind the arbitrator’s order.

In the same report, the Seattle-based company’s decision to move courts has seemed to come after the Indian stock exchanges agreed to the Future deal after discussing it with the Securities and Exchange Board of India (SEBI), India’s market regulator.

Last August, Reuters reports, Future decided to sell its retail, wholesale, logistics, and some other businesses to Reliance for $3.38 billion, including debt.

However, Amazon claims Future violated their terms. The Indian group couldn’t sell its assets to Reliance since it fell under the “restricted persons” list of companies.

The dispute has the potential to shape India’s retail landscape especially the grocery market sector, according to the same report.