The Supreme Court on Monday banned a final decision of a court reviewing the sale of Future Group’s $ 3.4 billion retail assets until the highest court hears the objections of aggrieved partner Amazon. com, three sources said.
Amazon appealed this month to the Supreme Court against the sale of Future Group to market leader Reliance Industries, accusing its partner of violating contracts by accepting the sale.
The outcome of the brawl involving two of the world’s richest men, Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani, could reshape India’s pandemic-stricken shopping industry and decide whether Amazon can blunt Reliance’s dominance of commerce Retail.
Three people familiar with Monday’s proceedings said the Supreme Court ordered that while the court could continue to review the deal and oversee the approval process, it could not make a final order while the court would hear Amazon’s concerns.
“It’s a good thing for Amazon,” said one of the sources, who has first-hand knowledge of the events.
The Indian stock exchanges and the antitrust watchdog have already cleared the deal, which is now awaiting approval from the National Company Law Tribunal (NCLT), in accordance with regulatory procedures.
A second source said Future only asked the NCLT to let it call meetings to get shareholder approval of the deal. This process will continue and Future will seek final court approval later, the source added.
Amazon declined to comment, while Future Group and Reliance did not immediately respond to a request for comment.
The sources sought anonymity as they were not authorized to speak to the media.
In its appeal to the Supreme Court, Amazon will argue that an October arbitration order putting the Future-Reliance agreement on hold remains valid, Reuters reported.
Regarding BSE, the RIL was trading down 2.48 percent from its previous close.