Future asks Delhi court to quash Singapore panel’s block on asset sale

Last Updated on January 4, 2023 by Admin


 India’s has asked a Delhi court to quash a decision by a Singapore arbitration panel that has kept the $3.4 billion sale of Future’s retail assets in limbo while the panel hears objections from com Inc.

has mounted legal challenges against Future’s planned asset sale to market leader since last year, accusing the company of violating certain contracts by doing so. Future denies any wrongdoing.

A Singapore arbitrator last year put the Future-Reliance deal on hold, and the panel last week declined Future’s request to revoke that decision. On Wednesday, Future asked the to intervene and quash the arbitrator’s decision according to Indian law, its legal filing seen by Reuters shows.

“The Arbitral Tribunal erroneously rejected FRL’s (Future Retail) contention,” its filing stated. “FRL submits that the standards applied by the Arbitral Tribunal … are incorrect.”

did not immediately respond to a request for comment.

Future is India’s second-largest retailer with over 1,700 stores and has warned that failure to strike the deal with Reliance could push it into liquidation.

The dispute started when Future, hamstrung by an economic hit from the COVID-19 pandemic, entered into a deal last year to sell its retail, wholesale, logistics and certain other businesses to Reliance.

Amazon had its sights on ultimately owning some of Future’s retail assets itself. It has argued a 2019 deal it had with a Future unit contained clauses prohibiting the Indian group from selling its retail assets to anyone on a “restricted persons” list that included Reliance.

The outcome of the tussle involving two of the world’s richest men, Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani, is seen as reshaping India’s pandemic-hit shopping sector and deciding whether Amazon can blunt Reliance’s dominance of the country’s nearly trillion-dollar retail market.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

mail 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


Source link