Delhi HC restrains Future Group from moving ahead with Reliance deal

The Delhi High Court Thursday upheld Singapore's Emergency Arbitrator's (EA) order restraining Future Retail Ltd (FRL) from going ahead with its ₹24,713 crore deal with Reliance Retail to sell its business, which was objected to by US-based e-commerce giant Amazon.

Justice J R Midha directed Kishore Biyani-led FRL not to take further action on the deal and held that the group wilfully violated Singapore Arbitrator's order.

The high court directed the Future Group and its directors to deposit ₹20 lakh cost in Prime Minister's Relief Fund for providing COVID-19 vaccines to senior citizens of Below Poverty Line (BPL) category.

The court directed the presence of Biyani and others before it on April 28 as also attachment of their properties.

The high court asked them to show cause as to why they be not detained for 3 months under civil prison for violating the emergency arbitrator's order.

The high court's order came on Amazon's plea seeking direction to order enforcement of the award by Singapore's EA on October 25, 2020, restraining FRL from going ahead with its ₹24,713 crore deal with Reliance Retail.

Amazon, in its interim plea, has sought to restrain FRL from taking any steps to complete the transaction with entities that are a part of the Mukesh Dhirubhai Ambani (MDA) Group.

Future Group and Amazon have been locked in a battle after the US-based company took FRL into emergency arbitration over an alleged breach of a contract between them.