Bezos vs Ambani in retail slugfest as they await ‘Future’ verdict
A judgment expected to be pronounced on Oct 26, could seal the fate of Reliance’s deal with the Future Group. Ecomm giant Amazon’s investment in Kishore Biyani-led Future Coupons is around Rs 1,500 crore
NEW DELHI: A one-man arbitration panel heard the plea of Amazon and Future Group last week and a verdict is expected in a few days, according to sources.
A hearing of the arbitration took place at the Singapore International Arbitration Centre on October 16 after Amazon had slapped a legal notice on Future Group, alleging that the retailer’s Rs 24,713 crore asset sale to Reliance Industries (RIL) violated an agreement with the e-commerce giant.
According to sources familiar with the matter, VK Rajah - the sole arbitrator in the Amazon vs Future vs Reliance arbitration matter heard the matter on October 16. Rajah, former Attorney General of Singapore, is expected to deliver his judgment in the next few days, the sources said.
Amazon has declined to comment over the development. “We cannot offer any comments as the matter is sub-judice,” said an Amazon Spokesperson. E-mails sent to Future Group and Reliance did not solicit any response either.
An outcome in this matter would decide the fate of the Future-Reliance deal announced on August 29, 2020 in which Future Group had announced sale of its retail, wholesale and logistics etc to Reliance Retail Ventures Ltd (RRVL), the retail arm of RIL.
In the hearing, which is said to have lasted for five hours, Future Retail side was represented by advocate Harish Salve. Singapore-based lawyer, Davinder Singh appeared on behalf of Future Coupons Pvt Ltd – the holding company of Kishore Biyani. Gopal Subramanium, former Solicitor General of India, appeared for Amazon, sources said.
Last year, Amazon had bought a 49 per cent stake in one of Future’s unlisted firms, Future Coupons Ltd, with the right to buy into flagship Future Retail after a period between 3 and 10 years. Future Coupons owns 7.3 per cent stake in Future Retail.
The tussle between Future and Amazon comes at a time when RIL has been bolstering its position in the country’s retail segment. RRVL- run by India’s richest man Mukesh Ambani - has been on a fund raising spree and since September, it has raised Rs 37,710 crore by selling stake in its retail arm.
RRVL operates India’s largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store JioMart.
It operates about 12,000 stores in nearly 7,000 towns, with 640 million footfalls across core categories of grocery, consumer electronics and apparel. Revenues for Reliance Retail in 2019-20 stood at Rs 1.63 lakh crore.