Amazon.com Inc has asked India’s markets regulator SEBI to wait for the final order of a Singapore court before clearing the merger of Future group, a move that is seen as a precursor to an eventual sale of its assets to Reliance Industries Ltd. In a 21 December letter, Amazon told Sebi that the Singapore arbitration court’s ruling has been held valid under India’s arbitration law by the Delhi high court and, hence, the Future group’s amalgamation must wait till the Singapore court gives a final judgement.The Delhi high court has also made it clear that no observations were passed with respect to the merits of the interim award. Consequently, all findings contained in the interim award, including the finding that FRL (Future Retail Ltd) is a necessary and proper party to the arbitration proceedings, continue to be valid, the Amazon letter said.
The high court on 21 December allowed Amazon to oppose Future’s asset sale to Reliance but left it to regulators, including the Securities and Exchange Board of India (Sebi), to decide on its validity. Amazon’s latest salvo to stall the ₹24,713 crore acquisition of Future group’s assets by Reliance Industries raises the possibility that the dispute may drag on for months, leading to a deterioration in Future group’s retail assets. Future group has been caught in the middle of a battle between Amazon and Reliance for supremacy in India’s retail market.
Courtesyg: Google (photo)
