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RIL, Future Group companies decline after SC rules in Amazon's favour

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Shares of RIL and Future Group companies tumbled on Friday after the Supreme Court reportedly upheld the Singapore-based emergency arbitrator's award which stalled the proposed deal between Future Retail and Reliance Group.

Future Enterprises (down 10%), Future Lifestyle Fashions (down 10%), Future Retail (down 10%), Future Supply Chain Solutions (down 10%), Future Consumer (down 8.82%) and Future Market Networks (down 5%) declined.

Meanwhile, shares of Reliance Industries slipped 1.98% to Rs 2091 on BSE.

According to media reports, the Supreme Court of India on Friday allowed the appeal filed by the firm against a Delhi High Court order staying attachment of properties of Future Group companies and Kishore Biyani in relation to the Rs 24,713-crore Future-Reliance deal.

The Bench of Justices Rohinton Fali Nariman and BR Gavai reportedly held that the order of an emergency arbitrator is enforceable in India, under Section 17(2) of the Arbitration Act.

As per media reports, a division bench of the Delhi High Court had stayed an order passed by the single judge. They had reportedly directed the attachment of properties of Future Group companies and Kishore Biyani in relation to the Future-Reliance deal.

The single judge order of the high court had upheld the award of an emergency arbitrator, directed attachment of the properties and restrained Future Retail Limited from going ahead with the Rs 24,713 crore merger with Reliance Retail, media reports said.

As per reports, this order was subsequently stayed by a Division Bench, prompting the appeal by Amazon.

The Singapore International Arbitration Centre's (SIAC), on 25 October 2020, had passed an interim order in favour of Amazon, restraining Future Group from proceeding on the deal with Reliance Retail.

In August 2020, RIL announced the acquisition of retail & wholesale business and logistics & warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore through its subsidiary Reliance Retail Ventures (RRVL).

In August 2019, Amazon had bought 49% stake in Future Coupons for Rs 1,500 crore. The US-based e-commerce giant said that the 2019 deal blocks Future Group from selling shares of Future Retail to rival RIL as it indirectly owned about 3.5% stake in Future Retail.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, August 06 2021. 12:26 IST
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