The Delhi High Court has ruled that U.S. e-commerce giant Amazon’s attempt to control Future Retail through a conflation of agreements it has with an unlisted unit of the Indian company will be violative of the FEMA FDI rules, the Kishore Biyani-led firm said on Wednesday.
Giving out its analysis of the Delhi High Court’s December 21 judgment, Future Retail Ltd. (FRL) in a filing with stock exchanges said its board approving a ₹24,713 crore deal to sell assets to Reliance Retail has been held “valid in law” by the court. It said the entire legal basis of the emergency arbitration award that Amazon secured to halt the ₹24,713 crore deal, “stands vitiated”. The High Court had on Monday upheld Amazon’s right to make representations to statutory authorities against the Future Group-Reliance Retail deal.
It, however, made several observations could potentially upend the U.S. giant’s 2019 investment in Future Coupons Pvt. Ltd.