Amazon-Future tussle: Here's all you need to know

Future Group approached the Delhi high court to pass an injunction order against Amazon that been trying hard to block the deal.

India's retail giant Kishore Biyani's Future Retail is stuck in a long-standing tussle with the US tech giant Amazon. Amazon has been blocking a deal worth $3.4 billion between Future Group and Reliance Retail alleging that the transaction between the two Indian majors violates the terms of its earlier contract with Future.

Future Group Founder and CEO Kishore Biyani does not expect any hurdle after the order of the Delhi High Court which has directed the regulators to take an independent call on the issue. (Hemant Mishra/Mint)

The failure of the retail assets deal with Reliance will push Future's retail unit towards insolvency with $4 billion in bank loans and debentures at risk, Reuters quoted the company claiming on Wednesday in a court filing.

Here what has happened so far:

> In January 2020, Amazon acquired a 49 per cent stake in Future Coupons, the promoter entity of Future Retail. This deal gave Amazon a 3.6 per cent stake in the Future group.

> Amid the unprecedented challenges of Covid-19, Future Retail eyes at restructuring and selling its retail assets like Big Bazaar to Reliance Retail Ventures Limited.

> On October 25, Amazon got an emergency order from Singapore International Arbitration Centre (SIAC) to block the Future assets sale to Reliance Retail Ventures Limited (RRVL). Future had rejected the challenge.

> According to a non-compete clause of the deal between Reliance and Future, Kishore Biyani and his family are not allowed to enter the retail sector for next 15 years.

> Future Group approached the Delhi high court to pass an injunction order against Amazon that been trying hard to block the deal. The court asked SEBI to scrutiny the deal.

> SEBI granted conditional approval to the deal.

> On Tuesday, the Delhi high court halted the deal in a blow to Future group.