BENGALURU: Kishore Biyani’s agreement to sell Future Group assets to Mukesh Ambaniis Dependency industries for Rs 24,713 crore is now on hold as the Singapore International Arbitration Center (SIAC) granted interim relief to Amazon from Jeff Bezos, for now, two people familiar with the matter said.
Earlier this month, Amazon had approached SIAC about its dispute with Future Coupons, one of Biyani Future Group’s holding companies where Amazon had invested Rs 1,431 crore, citing breach of terms due to its sale of retail assets to Reliance Industries. This was preceded by a legal notice from Amazon to Future Group citing the latter’s breach of terms.
While an interim order suspends the merger, the matter will continue to be heard at SIAC before the sole arbitrator, the former Singapore Attorney General, makes a decision. Legal experts said that it is usually the party dissatisfied with the international arbitration order that takes the matter to the Indian courts, but Amazon might have to go to the Indian courts as well, depending on the final order.
“This was an emergency arbitration hearing, in which (Amazon) requested a provisional suspension of the merger so that the Future-Reliance deal is not formally closed while the matter is in international arbitration,” said a person familiar with the development. This occurs when Reliance Industries has applied for an authorization with the Competition commission of India (CCI) on its agreement with Future Group.
Sources familiar with the matter said the arbitration procedure could last several weeks, before a final order is issued on this matter. This could also have an impact on banks that have lent to Biyani Future Group, as lenders are reportedly concerned that their loans will become NPA due to arbitration procedures delaying the merger.
“We welcome the award of the Emergency Referee. We appreciate the order that grants all the reliefs that were sought. We remain committed to a speedy conclusion of the arbitration process, ”an Amazon spokesperson said Sunday. A Future Group spokesperson declined to comment on the matter, while an email sent to Reliance Industries did not immediately get a response. Gopal Subramanium, former Attorney General of India, is one of Amazon’s legal advisers, among others. Harish Hail represents Future Group on the matter.
In the meantime, the group of the future it is also considering all available legal resources on this matter for its next course of action, said one of the people mentioned above. However, a decision has yet to be made.
.
