On Monday, the Delhi High Court dismissed the Indian Future Group’s claim that the group tried to restrict American partner Amazon from interfering in its sale of US$3.4 billion (approximately 2500 crore) of assets to Reliance.
Future sold its retail assets to Reliance in August, and Amazon said the transaction violated Future’s agreement with the U.S. e-commerce leader in 2019.
In October, Amazon won an injunction to suspend the sale of Singaporean arbitrators that the parties agreed to use in the event of a dispute.
Future later stated that the order was non-binding, prompting Amazon to file a complaint with the Indian market regulator.
In recent decades, it has been widely believed that the future is changing the retail industry in India. However, the COVID-19 pandemic has dealt a heavy blow to companies, so that founder Kishore Biyani sought a buyer.
The Competition Commission of India (CCI) last month approved Future to sell its retail, wholesale, logistics and warehousing operations to the trust of billionaire Mukesh Ambani.
On Monday, the court noted that the lawsuit filed by Future Retail, a division of Future Group, was upheld, and its decision to approve the deal with Reliance is also valid.
However, it pointed out that, given the potential irreparable losses, Amazon cannot be prohibited from writing to regulators, Judge Mukta Gupta said in the judgment.
According to Forrester Research, the Indian retail industry is expected to grow 46% in the next four years, reaching US$1.3 trillion (approximately Rs 9,574.50 billion) per year. Data shows that the key struggle is groceries, which may be worth about US$740 billion (approximately Rs 5,450,010 crore) each year by 2024.
Reliance and Future dominates the Indian market. Its next competitor, Avenue Supermarts’ DMart, is far behind in terms of stores and coverage.
© Thomson Reuters 2020
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