InvestorQ : What has been the response of the Future Group to the Delhi High Court order penalizing the Biyanis and also putting the deal on hold?
Sam Eswaran made post

What has been the response of the Future Group to the Delhi High Court order penalizing the Biyanis and also putting the deal on hold?

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Moii Chavate answered.
4 weeks ago
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The Future Group versus Amazon case is surely getting complicated and now even the Reliance group has come out in support of the Future Group. Future Group has already, over the weekend, approached Delhi High Court challenging the single-judge order which upheld the arbitral award issued in favour of Amazon by the Singapore Emergency Arbitrator. The Singapore arbitral order had restrained FRL and Reliance from going ahead with the deal.

The proposed merger deal between Reliance Industries and Future Group worth Rs.24,713 crore to buy out all the retail and wholesale assets of the Future group has been in limbo since it was first signed in August 2020. Now all the appeals made by Future Retail Ltd and Future Coupons Pvt Ltd will be heard on 22 March by a 2-judge bench. It may be recollected that on 18 March, the Delhi High Court had directed Future Retail to hold the merger deal.

In addition, the judge had also imposed a penalty of Rs.20 lakh on the Future Group and its directors, which had to be deposited in the Prime Ministers Relief Fund. That did sound a bit weird. Delhi High Court has summoned Biyani and others to be present in court on 28 April, when the next hearing on the issue takes place.

The single judge bench headed by Justice Midha had held that the arbitral award of the Emergency arbitrator in Singapore was valid and also clarified that the judge had rightly invoked the Group of Companies doctrine in relation to the Future Group. This appears to be more a proxy war as Amazon have been locked in a battle for leadership in the Indian retail market with the formidable Reliance Industries.

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