In an ongoing legal riot among Amazon and Future Group over Reliance Industries Ltd investments in Future Group, the mediation entity, Singapore International Arbitration Centre (SIAC) recently revealed that it is at the final stage of the proceedings has formed its panel to pass the final verdict.
Amazon, which had last year bought a 49% stake in Future Coupons, the promoter-entity of Future Retail, has contended that according to its contract with Future, the sale of the business to rivals (Reliance) is barred. Further, Future Coupon owns a 7.3% stake in Future Group, and when Amazon acquired a stake in the company it owned 3.58% stake in Future Group as well.
As per the terms of agreement between Reliance and Future, the deal between the two companies would only go through if Future Group’s companies are merged into one entity. After going to the SIAC, in another attempt to pause the deal, Amazon India wrote to SEBI asking it to not to give a go-ahead to Future Group mergers as the SIAC’s order is valid under India’s arbitration law.