We are all aware of the feud between Amazon and Kishore Biyani against Future Group’s deal with Reliance Retail worth USD 3.4 billion.
Recently, Kishore Biyani has fallen off his throne from being called the retail king of India as he has been banned from the securities market by Securities and Exchange Board of India (SEBI). It is a big win for Amazon who had previously petitioned to imprison Biyani and other officials of Future Retail and Future Coupons Private limited for the alleged deal with Reliance Retail.
The duration of the ban is for one year and neither Kishore Biyani nor his brother, Anil Biyani will be able to access, buy or sell Future Retail Shares for one year as officially stated by the Securities regulator for Insider Trading.
However, according to Kishore Biyani who is the Chief Executive Officer of the Future Group, the ban imposed by SEBI will NOT impact the companies $3.4 billion (INR 25,000 crore) deal with Mukesh Ambani’s Reliance Retail.
Previously on Tuesday, a single-member bench of Delhi Court, JR Midha directed Future Group and all its officials to maintain Status quo on the deal with Reliance Retail till an interim order given by the court. The Delhi High Court was then hearing Amazon’s plea on an Emergency Award (EA) passed by SIAC (Singapore International Arbitration Centre) which had restrained Future Group from selling its retail assets to Mukesh Ambani’s Reliance Retail.
The court passed the verdict that Singapore’s regulator’s verdict on the Future Group – Reliance Retail deal was valid and enforceable in India.
Furthermore, as mentioned in a report by Business Today, Economic Times, Times of India and other reliable sources, on Monday the High Court of Delhi had asked both the parties i.e., Amazon and Future Group if they were ready to resolve the matter and if the parties agreed to the resolution, the court would transfer the case to two experienced and retired Supreme Court judges. Then, both the parties asked the court for one day’s time until the hearing on Tuesday.
Amazon has been repeatedly praying to the court to put Kishore Biyani and other officials of the Future Group in civil prison for not following the arbitration court’s order, referring to the Singapore International Arbitration Centre.
The core of the issue is that with Future-Reliance deal succeeding, Amazon’s investment in Future Coupons Private Limited will go into the water and it would be a big loss for the US-based e-commerce company. Amazon will take forever to recover that amount of loss if Reliance and Future Group’s deal succeeds.
The feud continues, stay tuned.