Shares of Future Retail were locked in 10 percent lower circuit at Rs 55.85 per share on the BSE after the Delhi HC puts Future-Reliance deal on hold in relief for e-commerce giant Amazon.
Future Group stocks were locked in a 10 percent lower circuit after the Delhi High Court put the Future-Reliance deal on hold in relief for e-commerce giant Amazon. Future Retail was locked in a 10 percent lower circuit at Rs 55.85 per share on the BSE while Future Consumer traded at Rs 6.42, down 10 percent. Future Enterprises was also in the 10 percent lower circuit at Rs 8.60 per share and so was Future Lifestyle, trading at Rs 64.85.
The single-judge Bench of Justice JR Midha at the Delhi High Court on Thursday upheld the Emergency Award in favour of Amazon passed against the $3.4-billion Future-Reliance deal which puts it on hold.
The court held that the order of the Emergency Arbitrator was valid and capable of being enforced under Indian law. The court found that Future Retail and Kishore Biyani deliberately and willfully disobeyed the order and are liable to face action.
The court also imposed a penalty of Rs 20 lakh on Future and the money will go to the Prime Minister's Relief Fund.
The court also ordered that the assets of Kishore Biyani, Future promoter directors should be attached and asked them to file an affidavit to show cause why they should not be detained in civil prison for 3 months for violation of the Emergency Arbitration orders.
In October last year, the Emergency Arbitrator constituted under the Singapore International Arbitration Centre Rules had directed Future Retail to put on hold its transaction with Reliance Retail on grounds that it violated Amazon’s contractual rights borne out of an agreement to invest Rs 1,431 crore in Future Coupons
Post that, Amazon approached the Delhi High Court and sought the recognition and enforcement of the Emergency Arbitrator’s order in India.
In December 2020, the Delhi High Court had rejected Future Retail’s plea seeking an ad-interim injunction.
Reacting to the order by the Delhi High Court, the Future Group has said it has no bearing on the status quo of the ongoing case with Amazon since the matter is already in the Supreme Court.
The only caveat is that the Supreme Court has said that no final orders will be passed by the NCLT. The apex court has listed the Amazon versus Future case for hearing in the last week of April.
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(Edited by : Ajay Vaishnav)