[blackwasp]

The Delhi High Court has directed Future Retail Ltd (FRL) to maintain status quo in relation to its Rs 24,713 crore deal with Reliance Retail, which the US-based e-commerce giant Amazon is objecting to.

Amazon, which holds a 49% stake in a Future Group arm, Future Coupons, has accused Future Group of breaching terms of a contract that stated that it would need the US e-commerce giant's consent if it planned to raise money or sell a stake to another company. The agreement reportedly had a list of five to six companies, including Reliance Industries, that Amazon had drawn. Amazon claims Reliance was in the list of 5-6 companies Future Group could not enter in deal with.

In a relief to Amazon, the Delhi HC said it is of the "clear view" that the emergency award (EA) by the Singapore International Arbitration Centre (SIAC) is enforceable in India. The EA had stayed the Future-RIL deal in October 2020. Amazon moved the Delhi HC recently to enforce the EA and stop Future from taking any steps to close the deal with RIL. Amazon had mentioned in its petition that Future was deliberately and maliciously ignoring the SIAC order to close the RIL deal by obtaining clearances from authorities

The court said the immediate orders are required to protect the rights of the petitioner (Amazon)." “All the concerned authorities are directed to maintain status quo with respect to all matters in violation of the order dated 25th October, 2020, and shall file the status report with respect to the present status within 10 days of the receipt of this order,” said the order by Justice JR Midha.

Source

[GTO]

As much as it sucks for the Future group who are desperate for cash, the way that I see it = they accepted an investment from Amazon on the condition that the company won't be sold to Reliance (among others). All Amazon is doing is making them stick to that condition of investing. Tough but fair IMHO. They lost with the arbitrator, they lost in the High Court and I'm willing to be it'll be the same with the Supreme Court.

Better that Biyani works things out with Amazon, in whatever way.

[whencut86]

India Court Allows $3.4 Billion Deal That Amazon Wants Scuttled

https://www.bloomberg.com/news/artic...itter-business

I think SC will rule in favour of Reliance even if this case goes to SC. Singapore emergency arbitration tribunal’s order has no locus standi in this case since it is from a different jurisdiction. The laws of the land are different here.

The court states that "Agreement between Amazon and another Future Group firm cannot be enforced as Future Retail was not a party to that pact". Think such technicalities will help Reliance win the case if it goes to SC. Every group has so many sub-groups and every group has different entities for different businesses. Someone familiar with commerce or trade and business laws and legalities can comment if one entity enters into a deal, will the deal be binding on all related entities or only for that entity.

Personally, I will side with Reliance here because they are going great guns now. Amazon cannot flex its money power and clout alone in the Indian market like they have been doing now. There are other players in this space and hope Reliance goes big.

[download2live]

I will go against the popular opinion here to say that Amazon has a valid case here. Sure there are technical points which can be picked up to let the deal go ahead but what is the picture we are painting of India in international markets.

Anecdotally it takes fewer years for an MNC to recoup its investment costs in India compared to China. And this is because here rules are followed (mostly :-)) more faithfully compared to China.

[whencut86]

Originally Posted by download2live

I will go against the popular opinion here to say that Amazon has a valid case here. Sure there are technical points which can be picked up to let the deal go ahead but what is the picture we are painting of India in international markets.

Investments will continue to keep coming in. India is such a huge market for them to ignore. Amazon is no saint. They have done all sorts of stuff across geographies. They even suspended Parler App from AWS for being Pro-Trump recently.

The agreement between Future Group and Amazon needs to be analyzed actually and if that is actually between only one entity of the Future Group, I don't see that to be binding on the Future Retail entity which is getting into a deal with Reliance. Somebody knowing company laws and these nitty gritties will be able to validate this maybe.

[srini1785]

Looks like the first round between MA and Jeff went to Jeff.

In Huge Battle With Reliance, Amazon's Big Win In Supreme Court Today

The Singapore Emergency Arbitrator had in October 2020 restrained Future Retail from going ahead with its merger with Reliance Retail. The Supreme Court today said that directive is valid.

https://www.ndtv.com/india-news/big-...ndtv_topscroll

IMO, it was a clear Open-Shut case from day 1, Future was trying to exit the business by selling off to Reliance while still under agreement with Amazon.

[IamNikhil]

Originally Posted by srini1785

Looks like the first round between MA and Jeff went to Jeff.

In Huge Battle With Reliance, Amazon's Big Win In Supreme Court Today


IMO, it was a clear Open-Shut case from day 1, Future was trying to exit the business by selling off to Reliance while still under agreement with Amazon.

Be that as it may, this will still prove to be the final nail-in-the-coffin for Mr. Biyani. It seemed that Reliance had thrown him a life-jacket, when he had all but drowned under his own weight. Not sure how Future will be able to sustain if Reliance walks away.

[SnS_12]

Originally Posted by IamNikhil

Be that as it may, this will still prove to be the final nail-in-the-coffin for Mr. Biyani. It seemed that Reliance had thrown him a life-jacket, when he had all but drowned under his own weight. Not sure how Future will be able to sustain if Reliance walks away.

For senior Ambani this deal is of great importance too as the money from Facebook and the likes has been coming in for the retail business.. Oil was his cash cow but covid had other plans and Jio is far away from brining in profits at the level the refinery business used to do.. Only matter of time when the investors push the retail business to be listed separately to make gains on their investment..

[Sahil]

Originally Posted by IamNikhil

Not sure how Future will be able to sustain if Reliance walks away.

As of now, it's business as usual from the consumer and vendor point of view. The stores are stocked up and all PO's are raised from Reliance who is in turn servicing the big bazaar outlets. Essentially Reliance has already psuedo taken over supply chain as no one wanted to supply to Future group with the huge outstandings that are now getting cleared in most cases.

[IamNikhil]

Originally Posted by SnS_12

For senior Ambani this deal is of great importance too as the money from Facebook and the likes has been coming in for the retail business.. Oil was his cash cow but covid had other plans and Jio is far away from brining in profits at the level the refinery business used to do.. Only matter of time when the investors push the retail business to be listed separately to make gains on their investment..

The Ambanis generally aren't known to take things lying down. Expect some fireworks in the days to come. Since this has now become a prestige issue, there is sure to be another round of protracted legal battle.

[fordday]

Expect Future and Reliance to make it a nationalistic issue. With some major elections nearing we will definitely see some nationalistic and jingoistic fireworks. Given an option some might even make it a civilizational issue.

Future group argument that the American giant is driving them to penury after signing deals with them, is surprising.

[SnS_12]

Originally Posted by IamNikhil

The Ambanis generally aren't known to take things lying down. Expect some fireworks in the days to come. Since this has now become a prestige issue, there is sure to be another round of protracted legal battle.

Yes, but the person he is facing on the opposite end is known to have the determination to vanquish all competitors. Also, the ruling from Singapore International Arbitration Centre (SIAC) shows that it is going to be a up hill task for Mr Ambani to have the Indian judiciary work in his favor.

Amazon's size means it can afford to enter an entire sector at a loss. Every company Amazon competes with actually has to make money in the industry in which they operate but Amazon does not.

He can simply tease entering a new industry and put a competitor into a death spiral similar to what Jio tried and succeeded to do to a certain extent in the telecom sector. Just imagine what will happen to Reliance stock with the headlines printed as Mr. Bezos had a coffee with Mr. Sunil Mittal or Mr. Nick Read.

[v1p3r]

Latest twist : Amazon is now suing the ED itself.

https://www.ndtv.com/business/amazon...battle-2665937

[V.Narayan]

Originally Posted by v1p3r

Latest twist : Amazon is now suing the ED itself.

https://www.ndtv.com/business/amazon...battle-2665937

At least here my sympathies are with Amazon. The ED is acting on behalf of the political establishment who are acting on behalf of an industrialist we all know. It does not behoove an economy of India's size to have a "show me the face and I will show you the rule" approach to business and investment. In this one respect our feudal mentality of the ruling classes be it politicos or bureaucrats hasn't change in 200 years. First we had the infamous back to 1962 retrospective tax ruling and now this.

[ABHI_1512]

Originally Posted by v1p3r

Latest twist : Amazon is now suing the ED itself.

https://www.ndtv.com/business/amazon...battle-2665937

It took the behemoth like Amazon to take ED to court. Just remembered how the transfer of ownership of Mumbai Airport changed hands from GVK group recently. Hope the case rests on its merits