Reliance-Future Deal: Future Group to challenge Delhi Court’s order

A New Delhi court order blocking $3.4 billion retail assets sale will be challenged by India’s Future Group on objections of a business partner Inc on Wednesday.

In a battle of the retail titans that could reshape the shopping sector, the court stalled Future Group’s sale of assets to rival Reliance Industries on Tuesday after Amazon raised objections to the deal. A two-judge bench is set to hear the appeal in the court on Wednesday, said a source declining to be identified, as reported by news agency Reuters.


Shares of Future Retail dropped 5 per cent in early trade on Wednesday. Reliance Industries fell as much as 1.2 per cent but recovered later.

The U.S. e-commerce giant had asked the court to put a hold on the Reliance-Future deal arguing that the Future Group breached certain pre-existing contracts by selling retail assets to Reliance.

The court, effectively putting the deal on hold, said the arbitration order was enforceable and asked all Indian authorities to maintain status quo on the transaction.

In a statement, Amazon Inc. said, “We have the utmost respect for the Indian legal system and appreciate the interim order of the Hon’ble Delhi High Court to uphold the enforceability of the Emergency Arbitrator’s order and maintain status quo.”