In a big setback for Kishore Biyani’s Future Retail, Supreme Court on Friday ruled in favour of Amazon which would now block the sale of assets to Mukesh Ambani’s Reliance.
Supreme Court held that the Emergency Arbitrator order is enforceable, the order had directed for a stay on Future Retail selling it’s assets to Reliance.
In February this year, Amazon had filed a legal case against its partner Future Group challenging the Rs 24,000 cr sale to Mukesh Ambani.
Amazon had invested in Future group via coupons which meant they had the right to buy stake over 3-10 years and the e-commerce giant alleged that Biyani breached contract by entering into a sale agreement with Reliance. Amazon alleged that Future group could not sell retail assets to anyone on the "restricted persons" list, including Reliance.
With the current ruling, the Rs 24,000 cr deal between Reliance & Future will not be allowed to go through.