Amazon urges Sebi not to issue NOC for $3.4 bn Future-Reliance deal
Equipped with the notice from the Delhi High Court, Amazon has sent another letter to the Securities and Exchange Board of India (Sebi), requesting it not to issue a ‘no-objection certificate’ (NOC) to the $3.4 billion Future Retail-Reliance Industries deal and suspend the review immediately. The Jeff Bezos-led e-commerce giant has further urged the markets regulator to direct the Indian Stock Exchanges to not to issue no-objection or approval letter to Future Retail.
“In view of the directions in the operative part of the Interim Award, we request your good offices to take action by inter alia: (i) suspending review of the impugned transaction as well as the scheme involving the impugned transaction, and not granting any no-objection in relation to the same; and (ii) directing the Indian Stock Exchanges not to issue any no-objection/approval letter to FRL,” said Amazon in the letter.
The letter dated January 14, 2021 has been addressed to Ajay Tyagi, chairman, Sebi and a copy of which has been seen by Business Standard.
ALSO READ: Delhi HC issues notice to Future, RIL retail arms on Amazon’s plea
The Delhi High Court (HC) on Wednesday served a notice on Future Retail (FRL), Reliance Retail, and the Biyanis, seeking their views on a plea by Amazon against some of the observations by a single judge Bench in a December 21, 2020, interim order.
“The Division Bench has accepted the appeal seeking to set aside the observations in the single judge order,” said the new letter.
The letter said thus, the validity of the prima facie observations contained in the single judge order is presently sub-judice before the Division Bench.
“In light of this, we request you not to assist FRL in violating the process of law and disregarding the Interim Award, which is a deemed to be an order of a Civil Court under the Code of Civil Procedure, 1908,” said the letter. “We hope that your good offices will give due credit to the injunctions operating against FRL and follow the rule of law.”
Despite the unequivocal and clear directions in the single judge order, Amazon said in the letter that it is shocking that FRL has been relying on some prima facie observations in the said order to misconstrue the true import of the single judge order.
The letter said “shocked and aggrieved” by FRL’s blatant attempts to “mislead” Indian regulators, and the general public, by relying on certain prima facie observations in the single judge order, Amazon has been constrained to file an Appeal before the Division Bench of the Delhi High Court, seeking to set aside these prima facie observations in the single judge order.
In December 2020, the Delhi HC refused to restrain Amazon from interfering in FRL’s deal with Reliance Retail by writing to the statutory authorities. The order was pronounced by a single judge Bench in the suit by FRL after an EA (Emergency Arbitrator) of the SIAC (Singapore International Arbitration Centre) restrained Future Group from taking any steps in furtherance of the transaction with Reliance Retail.
ALSO READ: Sustained auto sector recovery, margin gains to support Bosch stock
The Delhi HC, prima facie, found that the suit filed by FRL was maintainable, the EA was valid, and that FRL’s resolution approving the transaction with Reliance was also valid. The court opined that it was ‘a matter of trial’ to determine whether Amazon’s case outweighed FRL’s claim and for now, it was for the statutory authorities (or) regulators to come to their own right conclusion.
Amazon then this week filed an appeal before a Division Bench of the Delhi High Court against some of the observations by the single judge Bench in a December 21, 2020, interim order. On Wednesday, a Division Bench of Chief Justice D N Patel and Justice Jyoti Singh heard the appeal. They have granted time to FRL, Reliance Retail, and other respondents to file their response to the appeal. The court has issued notice in the matter and listed it for further hearing on February 12.
In August 2020, Future Group struck a $3.4-billion asset sale deal with Reliance Industries (RIL). Amazon then sent a legal notice to Future, alleging the retailer’s deal breached an agreement with the American e-commerce giant.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
