Regulatory approval for the Future Group’s $3.4 billion asset sale to Reliance Industries Ltd. has been stopped by the Supreme Court. It effectively halted the deal and marked another win for Amazon.com Inc., as to dominate the retail sector of the country, where Amazon wants to hamper the transaction.
On Monday, consenting with the petition of the American e-commerce giant, the SC overturned the ruling of a lower court and halted the tribunal of Indian companies from accepting the transaction till further orders.
Seeking written statements from Future Retail Ltd., over the petition of Amazon, the court has issued notices. The two-judge panel head Justice Rohinton F. Nariman said that after five-week, the court will hear the case again.
The latest verdict reinstates Jeff Bezos-founded Amazon’s legal advantages which secured an interlude stay on the October deal of Singapore arbitration tribunal after Amazon accused the Future Group of violating partnership contract as last year it agreed to sell its assets to the conglomerate of billionaire Mukesh Ambani.
However, the Monday order jeopardizes Future Retail Ltd., which has warned of insolvency as it is struggling to pay its debt.