Future Retail vs Amazon full case details.
                     FUTURE RETAIL VS 
AMAZON FULL CASE 
DETAILS
INTRODUCTION
 The Delhi High Court Monday declined to grant Future Retail Ltd.'s 
(FRL) plea for an interim injunction restraining Amazon from writing 
to SEBI, CCI and other authorities about the arbitral order against its 
asset sale.
Source: indianexpress.com
Future Retail vs Amazon 
•The Kishore Biyani-led FRL had in November accused Amazon of 
adopting a media strategy of having every development reported 
and converted into a line of communication with stock exchanges 
regarding the Amazon-Future Coupons’ arbitration proceedings in 
Singapore.
•The court also termed FRL’s resolution approving the transaction 
with Reliance Retail as valid.
Source: indianexpress.com
What is the Future-Reliance 
deal?
• In August this year, Biyani’s Future Group entered into an 
agreement with Reliance Retail, a subsidiary of the umbrella 
Reliance Industries Limited (RIL) group, to sell its retail, 
wholesale, logistics and warehousing to the latter. 
Source: businesstoday.com
FUTURE SOLD IT’S 
SUPERMARKET
•As a part of the deal, Future Retail will sell its supermarket chain Big 
Bazaar, premium food supply unit Foodhall and fashion and clothes 
supermart Brand Factory’s retail as well as wholesale units to 
Reliance Retail.
Source: indianexpress.com
AGRREMENT TO REDUCE 
DEBT
•The Future Group, was under considerable pressure from its 
lenders to tackle its debt and the agreement was considered an 
offer of the Group to reduce its debt. 
•Before the August sale to Reliance, Biyani had been wooing 
several business groups to sell shares in several companies of 
Future Group in an attempt to cut down on the debt, but had 
not seen much success.
Source: indianexpress.com
COVID-19 IMPACT ON RETAIL 
SECTOR 
•The retail sector of the Future Group was more pressured after 
the national lock-down in March, which involved the spread of 
Covid-19. 
• In a lock-down lasting over two months, the sales of most of its 
luxury product sales arm and Brand Factory were near halted.
Source: indianexpress.com
FUTURE GROUP’S DEAL WITH 
AMAZON
•Another contract with the Amazon was signed by Biyani's Potential 
Retail. As a part of the arrangement, Amazon gained a 49% stake in 
Future Coupons, Future Retail's owners, in a contract worth almost 
Rs 2,000 crore. 
Source: indianexpress.com
FUTURE GROUP’S GOODS ON 
AMAZON
•While Future Retail could position its goods on the online 
marketplace of Amazon, the two also decided that Amazon's Future 
Retails products were also included in the new strategy, which aimed 
at distributing products within 2 hours of a customer purchasing 
them in select cities. 
Source: indianexpress.com
Why is Amazon objecting to the 
Future-Reliance deal?
•After Future’s agreement with Reliance, Amazon said the deal 
was a violation of a non-compete clause and a right-of-first-
refusal pact it had signed with the Future Group. 
•The deal also required Future Group to inform Amazon before 
entering into any sale agreement with third parties.
Source: indianexpress.com
Why did FRL move the Delhi High 
Court?
•The company had moved a plea in the Delhi High Court seeking 
appropriate relief against Amazon.com’s NV Investment Holdings to 
stop the latter from interfering in its deal with Reliance Industries 
Limited’s (RIL) Reliance Retail Ventures Limited (RRVL). 
Source: indianexpress.com
What does the Delhi High Court’s 
ruling mean?
•While the order says the statutory authorities and regulators can 
take a view on the deal in accordance with the law, it also held the 
award given by the arbitrator as valid. 
•Therefore, given that Future Retail failed to stop Amazon from 
presenting itself to the various government bodies and regulators, 
the e-commerce giant will be allowed to make its case, mainly on 
the basis of the arbitration award.
Source: indianexpress.com