Future group, Amazon to initiate arbitration proceedings over RIL deal

Amazon says the deal violates the no-compete contract signed with the Future group and the RIL-Future deal will derail its plans to buy a stake in Future Retail Ltd

Global retail giant Amazon and Future Group are planning to initiate arbitration proceedings following a dispute over the latter’s sale of its retail and wholesale businesses to Reliance Industries Ltd (RIL).

This decision, according to Amazon, has breached its non-compete agreement with Future Group, apart from the right of first refusal the US ecommerce giant has to Future Retail shares.

A Future Group source said the arbitration could be initiated in Singapore and a mediator would be appointed to resolve the issues.

Amazon had picked up 49 per cent in Future Coupons in December last year for Rs 1,430 crore.