India’s Future Retail said on Sunday that a Singapore arbitrator’s order in its dispute with Amazon isn’t enforceable under Indian law and not binding on the company.
Amazon on October 25 won an injunction from the arbitrator to halt Future Retail’s deal to sell its retail assets to Reliance for $3.4 billion (kind of Rs. 25,300 crores), arguing the Indian retail group had violated sure pre-existing agreements it had with america e-commerce giant.
Both Future Retail and billionaire Mukesh Ambani’s Reliance said in news releases later they wanted to press on with the deal without delays, setting the stage for a showdown between the Indian companies and Jeff Bezos-led Amazon.
Calling the proceedings before the so-called “emergency arbitrator” void, Future Retail told Indian exchanges that any attempt on the a part of Amazon to enforce the order will be resisted.
“FRL could also be in the process of taking appropriate valid action to give protection to its rights,” the company’s regulatory filing said on Sunday.
Amazon did not immediately respond to a request for remark.
Future Retail’s filing comes after Reuters on Saturday reported Amazon had one by one complained to India’s markets regulator alleging the Indian company had misled shareholders by incorrectly saying it used to be complying with its contractual obligations, seeking suspension of the deal’s regulatory review.
In its Sunday filing, Future Retail said it had complied with all regulatory requirements and urged the market regulator and the Indian inventory exchanges to continue to review its care for Reliance for approval.
The dispute centres around Future Retail’s decision in August to sell its retail, wholesale and a few other businesses to Reliance for $3.38 billion (kind of Rs. 24,900 crores), including debt.
Amazon argues that a separate 2019 deal it had with a Future unit had clauses saying the Indian group couldn’t sell its retail assets to anyone on a “restricted persons” list including any firms from Reliance chief Mukesh Ambani’s group.
The deal specified any disputes would be arbitrated under Singapore International Arbitration Centre rules.
© Thomson Reuters 2020
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