World News – GB – Future Group hints it could challenge arbitral award putting RIL deal on hold

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Future Retail Ltd (FRL) said in a statement on Monday that the company is reviewing the interim order passed by the Singapore International Arbitration Center

Future Retail, led by Kishore Biyani, hinted on Monday that it could challenge the Singapore-based arbitration center’s award in Indian legal forums, to ensure its ₹ 24,713 crore deal goes unhindered. and without any delay

Amazoncom Inc won an interim award on Sunday against its partner Future Group, selling retail operations to Reliance Industries Ltd for ₹ 24,713 crore after a Singapore-based single-judge arbitration panel suspended the agreement

Future Retail Ltd (FRL) said in a statement on Monday that the company is reviewing the interim order passed by the Singapore International Arbitration Center (SIAC) in the arbitration proceeding invoked by Amazon in connection with a shareholders’ agreement with the promoters of the Future group

FRL, which operates retail chains like Big Bazar and Easy Day, said it was not a party to the agreement under which Amazon invoked arbitration proceedings and that the agreement cannot be withheld through the arbitration process

« The FRL has been legally informed that actions taken by the FRL / its board of directors, which are in full compliance with relevant agreements and eminently in the interest of all stakeholders, cannot be accepted in arbitration proceedings initiated under an agreement to which FRL is not a party, ”said FRL

In accordance with the advice received by FRL, all relevant agreements are governed by Indian law and the provisions of Indian Arbitration Law for all practical purposes and this issue raises several fundamental jurisdictional questions which go to the root of the question

« Accordingly, this order shall be tested in accordance with the provisions of Indian Arbitration Law in an appropriate forum, » FRL said adding « in any enforcement proceeding, FRL would take appropriate steps to ensure that the proposed transaction will proceed unimpeded without any delay « 

Passing an interim price in favor of Amazon, VK Rajah asked the Future group to put the deal on hold and said the deal could not be done until he finally made a decision on the matter. , said sources with direct knowledge of the development

Amazon, which agreed to buy 49% of one of Future’s unlisted companies last year with the right to repurchase in flagship Future Retail Ltd after a period of three to 10 years, had lagged behind Future towards arbitration after the indebted Kishore Biyani group company signed agreement to sell retail, wholesale, logistics and warehousing units to billionaire Mukesh Ambani’s Reliance

« We welcome the decision of the emergency arbitrator We are grateful for the order which grants all the remedies that have been requested We remain committed to a speedy conclusion of the arbitration process, » the arbitration process said on Saturday. Amazon spokesperson

Meanwhile, RIL’s retail subsidiary Reliance Retail Ventures Limited (RRVL) has said it intends to assert its rights and finalize the deal in terms of the plan and agreement with the Future group without any delay

« RRVL has entered into the transaction to acquire the assets and business of Future Retail Limited pursuant to appropriate legal advice and the rights and obligations are fully enforceable under Indian law RRVL intends to enforce its rights and to finalize the transaction in terms of plan and agreement with the Future group without any delay « , said RRVL

With dispute, Amazon draws battle lines with Reliance in race for estimated $ 1 trillion retail market in India, where online shopping is gaining ground It needs Indian partner to strengthen presence after have become the authorized online sales channel for Future Retail stores that sell everything from groceries to cosmetics and clothing

Amazon slapped a legal opinion on Future Group, alleging that the sale of the retailer’s ₹ 24,713 crore assets to Reliance Industries violated a deal with the e-commerce giant and brought the Future group company into arbitration

Earlier on August 29, 2020, the Future Group announced the sale of its retail, wholesale and logistics business, etc. to Reliance Retail Ventures Limited, the retail arm of Reliance Industries

Amazon last year bought a 49% stake in one of Future’s unlisted companies, Future Coupons Ltd, with the right to repurchase the flagship Future Retail after a period of between three and 10 years Future Coupons has a 7Participation of 3% in Future Retail

Future vs. Amazon fight comes as Reliance strengthens its position in the country’s retail segment

Reliance Retail Ventures Ltd – run by India’s richest man Mukesh Ambani – is fundraising and since September it has raised ₹ 37,710 crore by selling stakes in its sales arm at detail

RRVL, operates India’s largest, fastest growing and most profitable retail business, covering supermarkets, consumer electronics chain stores, wholesale business JioMart, fast fashion stores and online grocery store

This story was posted from a wire agency feed with no text changes. Only the title has been changed

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Reliance Industries Limited, Future Group, Reliance Retail, Future Retail, Amazoncom, Mukesh Ambani, Arbitrage, Kishore Biyani

World news – GB – Future Group hints that it might challenge the arbitration award putting the RIL agreement on hold



SOURCE: https://www.w24news.com/news/world-news-gb-future-group-hints-it-could-challenge-arbitral-award-putting-ril-deal-on-hold/?remotepost=467967

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