The Supreme Court (SC) on Wednesday lifted the stay on arbitral proceedings before Singapore International Arbitration Centre (SIAC) between Future Group and Amazon. The Bench also said that Future Retail’s plea for termination of proceedings before SIAC will also be heard on priority.
The SC said in its order that the interim application will be transmitted to the Delhi High Court as agreed by both parties and as proceedings have already begun there.
Ecommerce giant Amazon on Tuesday put out a public notice in a newspaper accusing Future Retail (FRL) and its promoters of committing fraud after Reliance Industries (RIL) took over some retail stores of FRL.
Amazon is fighting a legal battle with FRL to stop the Kishore Biyani-led retailer’s $3.4 billion deal with Reliance Industries Limited (RIL). In October 2020, Amazon sent legal notice to Future for the deal. It alleged it breached Future’s agreement with Amazon.
Shares of Future Retail surged 20 per cent on Monday following reports that the company was likely to approach various courts and tribunals bringing to their notice the latest order by the Competition Commission of India (CCI).
Future Retail’s scrip jumped to a high of Rs 57.50 as against the previous close of Rs 47.95 on the National Stock Exchange. On Friday, the CCI had placed in "abeyance" Amazon's investment in Future Coupons.
Future Retail said on Sunday that it firmly believes that the Competition Commission of India (CCI) will not be intimidated by the arrogance of Amazon. Future hopes that instead, CCI will take action on its show cause notice against the US-based e-commerce company, in accordance with the law.
This statement comes after Amazon walked out of CCI proceedings on November 24. “The counsels to Amazon, in utter disregard to the norms and utter disrespect to the Indian statutory regulatory authority, refused to argue the matter. They walked out of the proceedings in an attempt to browbeat the CCI,” the Indian retailer said in a stock exchange filing.
Amazon.com Inc on Thursday reported a slump in profit that it expects will continue through the holiday quarter, as higher wages and spending to attract workers diminish the company's windfall from online shopping.
Shares fell 4% in after-hours trade.
After a year of blockbuster results, the world's largest online retailer is facing a tougher outlook.
Amazon has been of late and also for sometime now making some contradictory statements about its legal expenses in India. The company has claimed that it incurred a meagre expense of Rs 52 crore towards legal fees in FY20.
This is out of the total expense of Rs 1,967.5 crore shown as legal professional charges in financial statements of Amazon Seller Services Private Limited as sourced from the website of Ministry of Corporate Affairs.
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