amazon:  Amazon can’t put ₹1,431 crore in FCPL: Future Group - Times of India

amazon: Amazon can’t put ₹1,431 crore in FCPL: Future Group – Times of India

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NEW DELHI: Hardening its stand against Amazon, the Future Group on Tuesday informed the Supreme Court that at present it is impossible to implement Amazon’s agreement to invest Rs 1,431 crore to acquire 49% equity in Future Coupons.
Citing the December 17 order of the Competition Commission of India (CCI) keeping in abeyance its November 28, 2019 approval for Amazon’s investment in Future Coupons, the Biyanicontrolled companies filed a joint affidavit in the SC and said the performance of the FCPL Shareholders Agreement (SHA) of August 22, 2019 has been rendered impossible.
Since the FCPL SHA cannot be implemented, the logical conclusion is the termination of the arbitration proceedings initiated by Amazon before the Delhi-based international arbitral tribunal seeking to restrain Future Retail’s agreement with Reliance Retail, which promises to invest Rs 25,000 crore to acquire the retail chain while retaining its existing 22,000 employees.
Future Group alleged that Amazon had misled the CCI while seeking approval for investment in FCPL without disclosing that it would exercise its control over Future Retail through investment in FCPL. That was the reason why CCI not only kept in abeyance its earlier approval to Amazon’s investment in Future Coupons, but also imposed a penalty of Rs 202 crore on Amazon for suppression of facts, it said.
Amazon had filed a special leave plea in SC challenging the decision of a division bench of the Delhi HC staying the arbitration proceedings till March 21 in view of CCI order. The case is listed before a bench headed by CJI NV Ramana on Wednesday.



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