New Delhi: The dispute between Future Group and e-commerce company Amazon, which started after a Rs 24,713 crore deal with Future Group’s Reliance Group, has now reached the Delhi High Court. The two companies have filed separate caveat petitions in the court so that the case is not decided after hearing only one party. The Future Group, led by Kishore Biyani, had filed a caveat petition in the Delhi High Court on November 2. Sources said that Amazon has also imposed a caveat. Amazon, however, declined to comment.
In fact, the whole matter is related to Future Group’s deal in August to sell its retail and wholesale business to Reliance Retail Ventures Limited, a subsidiary of Reliance Industries, and Future Enterprises Limited’s logistics and warehouse business. Objecting to the deal, Amazon says it bought a 49 per cent stake in FCPL, the promoter of Future Retail, in August last year. The deal gives Amazon the right to be asked first to invest in Future Group. It also has the right to buy a stake in Future Retail, the group’s flagship company, after a period of three to 10 years.
FCPL has a 7.3 per cent stake in Future Retail. Future Retail operates more than 1,500 retail stores across the country, including Big Bazaar. Future Group has struck a Rs 24,713 crore deal with Reliance. Currently, there is a battle between Amazon, Reliance and Walmart’s Flipkart to capture the Indian retail market and e-commerce market. Amazon has managed to obtain an interim order in its favor on October 25 from an international arbitration forum in Singapore to block the Future Group’s deal with Reliance.
“No decision should be made on any of the petitions filed on behalf of Amazon,” Future Group said in its court petition. Future Retail Limited should be informed in this regard under Section 148A of the Code of Civil Procedure. ” The company said it had also sent a copy of the caveat petition to Amazon. “You (Amazon) shall notify the Company 48 hours prior to filing any petition under Section Nine of the Arbitration and Reconciliation Act,” he wrote in a copy to Amazon.
