The Singapore International Arbitration Centre (SIAC) passed an interim order asking Future Group to hold its plans to sell its retail and wholesale businesses to the Reliance Group and wait for the final judgment on the plea filed by Amazon Inc, an Economic Times report said.
An arbitration petition was filed by Jeff Bezos-led Amazon with SIAC, this month, claiming that the Kishore Biyani-led Future Group had breached its contract where the US e-commerce giant took an indirect stake in their retail business in 2019. Amazon appealed to the court that the proposed deal between Reliance and Future Group does not have its approval and hence should not go ahead with it.
SIAC in its order also said Amazon has to submit a proposal to the court within a week, outlining its plans with Future Retail, in case the outcome is in its favour.
The SIAC has now asked Amazon has to submit a proposal to the court within a week, outlining its plans with Future Retail, in case the outcome is in its favour, said the ET report.
In August, Reliance Industries Limited (RIL) had announced that its subsidiary Reliance Retail Ventures Limited has acquired the retail, wholesale and logistics businesses of the Future Group for Rs 24,713 crore.
Amazon holds about 5% stake in Future Retail and as per their contract, Future Group was restricted to sell off or transfer its assets to the third party without their consent.
According to experts, to enforce the SIAC order, Amazon will have to seek a similar judgement from an Indian court.