Amazon asks bourses to nix Future-Reliance deal

Amazon has asked the stock exchanges to nullify the conditional nod given to the Rs 24,700-crore Future-Reliance deal citing that seeking such an approval itself was a breach of the directions of the Emergency Arbitrator.

“Future Retail’s pursuit of the approval for the impugned transaction before Sebi and the Indian stock exchanges was in clear breach of the directions in the EA order. In light of various judgments noted in the Supreme Court judgement, all acts done in violation of the EA order and the Enforcement judgement are illegal and ought to be nullified,” Amazon said in a letter to BSE and NSE.

As per the directions of the Emergency Arbitrator of the Singapore International Arbitration

Centre, “the respondents are injuncted from taking any steps in furtherance or in aid of the board resolution made by the board of directors of FRL on 29 August 2020 in relation to the disputed transaction, including but not limited to filing or pursuing any application before any person, including regulatory bodies or agencies in India, or requesting for approval at any company meeting”.

Amazon contended that FRL has attempted to mislead Sebi and the Indian stock exchanges by stating that Amazon’s request to revoke the conditional observation letters would be inappropriate as the Hon’ble Supreme Court of India is seized of the matter. The Supreme Court had said that no final orders can be passed by the statutory authorities. “It is to be noted that the intent and purpose of the Supreme Court order was to stay proceedings before statutory authorities and Indian courts,” Amazon said.

The contents of the EA order and the Supreme Court’s direction rebut all submissions made by FRL. “In order to maintain the sanctity of law, we request the Indian stock exchanges to immediately revoke the conditional observation letters in view of the contumacious conduct of FRL, FCPL and the Biyanis,” Amazon requested.

Sebi and the stock exchanges had given conditional approval or “no adverse observation” report to the Reliance deal earlier.