Singapore tribunal starts hearing Future’s plea to lift stay on deal to sell its assets to Reliance Retail

Singapore tribunal starts hearing Future’s plea to lift stay on deal to sell its assets to Reliance Retail.  |  Photo Credit: BCCL

New Delhi: The arbitration proceeding between the US-based e-commerce behemoth Amazon and Kishore Biyani-promoted Future Group has resumed in Singapore on July 12 over the latter’s Rs 24,713 crore deal with billionaire Mukesh Ambani-controlled Reliance Retail.

In August 2020, Reliance Retail Ventures had mentioned that it would acquire the retail and wholesale business, and the logistics and warehousing business of Future Group for Rs 24,713 crore.

The Singapore International Arbitration Centre (SIAC) has reportedly started to hear Future Group’s petition to remove the stay on the transaction to offload its retail assets to Reliance Retail and exclude its flagship listed company as a party to the dispute with the American online retail major, according to a report in ET.

The SIAC in October last year issued an emergency order, restraining Future Group and Reliance from proceeding with the deal signed in August for Future Retail to sell its assets to Reliance Retail.

Currently, a three-member tribunal comprising Singaporean barrister Michael Hwang, Albert van den Berg and Jan Paulsson is hearing Future Retail’s petition that the dispute was between one of its promoter entities and Amazon, and that it should not be made a party to it. This proceeding will continue on July 13 (Tuesday), while during the next two days, the bench will contemplate on the appeal to repeal the stay, people familiar with the development told the business daily. 

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It is important to note that, ETNow earlier reported that Future Group promoter and chief executive Biyani wrote to Future Group employees, alleging that the American online retail giant was playing the “dog in the manger” and that its only aim to create ruckus about the Future Group’s deal with Reliance Industries.

Citing sources, the publication stated that a verdict is likely only next month, Further, the committee has yet to schedule hearings on the main controversy—Amazon’s challenge to the Future-Reliance deal.

On Monday, Future’s lawyers examined Amazon India senior counsel Hina Doon. “One the first day, there was cross-examination of only one witness from Amazon,” the publication quoted one of the people as saying.

Amazon owns a 49 per cent stake in Future Coupons, the promoter entity of Future Retail. And through this deal, it has acquired about a 3.6 per cent stake in the Future Group.

The American e-commerce titan has claimed that the Future-Reliance deal was in violation of its 2019 investment agreement with Future Coupons that gave Amazon the right of first refusal in case of sale.