In March, a single-bench judge of Delhi high court headed by Justice Midha had noted that emergency arbitrator’s (Singapore International Arbitration Centre: SIAC) interim award needs to be complied with in India. This had put a stay on the Rs 24,700-crore proposed deal between Future Group and Reliance Retail.
“Future Retail is advised that it has remedies available in law, which it will exercise,” said a Future Group spokesperson. “Future Retail intends to pursue all available avenues to conclude the deal to protect the interests of its stakeholders and workforce.”
“Future Retail has the option to file a special leave petition against the HC order before the SC or appeal a review petition in the same SC bench,” said a person familiar with the development. “The interesting thing to understand is, what is Amazon’s game plan given the current Indian FDI rules. Amazon needs to answer this question on their future plans with FRL,” he said.
Amazon, however, is waiting for the emergency arbitrator’s ruling that is expected within a few weeks. SIAC had set up a tribunal to look into allegations by Amazon that Future Group had not maintained its contractual obligations by engaging with Reliance Retail for the deal. Before the deal, Amazon had bought a 49% stake in Future Coupons, a Future Group entity for Rs 1,500 crore. Future Coupons holds around 7% stake in Future Retail that gives Amazon direct stake of around 3.5% in Future Retail.