Future Group may have suffered another temporary setback in court but the group is not in mood to back down, and may soon file an appeal before a division bench of the high court against the single judge bench's March-18 order. The single judge of the Delhi HC had issued a show-cause notice to Future group founder Kishore Biyani while halting the Rs 24,713 crore deal. It also imposed Rs 20 lakh fine and asked why Biyani and other top officials should not be arrested.
They have been asked to remain present in the court for the next hearing in April. The judge said the company will have to deposit Rs 20 lakh as fine for violating the Emergency Award of the Singapore International Arbitration Centre (SIAC), which should be deposited with the Prime Minister's Relief Fund. The court has also ordered attachment of properties of Biyani and others related to the Future Group.
The Delhi High Court single judge bench on March 18 upheld the order by the Singapore International Arbitration Centre prohibiting Future Retail from going ahead with its deal with Reliance Retail. The SIAC had restrained the Rs 24,713-crore acquisition deal against a plea by global retail major Amazon.
The Justice JR Midha bench held that Kishore Biyani-led Future Group wilfully violated Singapore Arbitrator's order and directed it not to take further action on the deal.
On August 29, 2020, Future Group announced the Rs 24,713-crore sale of its retail and wholesale assets to Reliance Retail Ltd, the retail subsidiary of Reliance Industries (RIL).
A year before, in August 2019, Amazon had bought 49 per cent stake in Future Coupons for Rs 1,500 crore. The world's largest e-commerce giant says the 2019 deal blocks Future Group from selling shares of Future Retail to rival RIL as it indirectly owned about 3.5 per cent stake in Future Retail.
On October 25, 2020, the SIAC ruled in favour of Amazon and passed an interim order that put the Rs 24,713-crore Reliance Industries-Future deal on hold. The Court had written to BSE and SEBI to uphold the decision. Besides, Amazon had sent a legal notice to Future Coupons over its deal with Reliance.
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