InvestorQ : Has the latest Delhi High Court order created problems for the Future – Reliance deal?
sara Kunju made post

Has the latest Delhi High Court order created problems for the Future – Reliance deal?

Mary Joseph answered.
2 years ago

The deal has been in the limbo since it was first signed in August 2020. The latest challenge to the Future Retail – Reliance Deal has come from the Delhi High Court supporting the contention of Amazon on the sale of assets by Future group. The High Court has now asked the Future Group to put the deal on hold and maintain status quo.

This will certainly be a temporary setback for Future Group, as it was counting heavily on the Reliance Retail merger deal to tide over its debt crisis. Now that looks to happen anytime soon and RIL has left the issue to be resolved between Future Group and Amazon as the deal with Future Coupons is one in which Reliance was not involved in any way.

The world’s largest ecommerce market place, Amazon, has stuck to its stand that the Future group violated the terms of its deal with Future Coupons by selling assets. Earlier, Amazon had also written to SEBI and to the two stock exchanges to hold the deal. However, SEBI had approved the deal with the caveat that Future group will have to disclose details of the legal case in all its communication.

The latest decision by the Delhi High Court adds a new dimension to the problem. The status quo imposed by the Delhi High Court clearly indicates that the Singapore tribunal order was enforceable; at least in the opinion of the Delhi High Court. This deal could decide who dominates Indian retail space and it is not surprising that Amazon does not want to leave any stone unturned.