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Business Standard
29-06-2025
- Business
- Business Standard
SIAC rules for Amazon in Future case, awards ₹23.7 crore damages
Amazon wins arbitration against Future Group at SIAC, but tribunal awards a fraction of claimed damages citing FRL's declining value and Covid-related business loss New Delhi The Singapore International Arbitration Centre (SIAC) has awarded ₹23.7 crore in damages, besides arbitration and litigation costs, to Amazon in its long-running dispute with the Kishore Biyani-led Future Group. The three-member bench of the tribunal held that Future Group had breached the terms of its contract with Amazon by entering into a transaction with Reliance. It also told 11 promoters and parties of the Future Group, including Kishore Biyani, to pay the amount along with interest from March 9, 2022 till now. The dispute pertains to a decision by the Future Group to sell its Big Bazaar retail business to Reliance Retail, a subsidiary of Reliance Industries. Amazon had in 2022 argued before the Supreme Court of India that its ₹1,400-crore investment in the Future Group does not allow the latter to sell its assets to certain companies, which includes Reliance. Amazon had, however, sought ₹1,436 crore damages, citing Future Retail Limited's (FRL) 'deteriorating value.' SIAC ruled that Amazon was entitled to damages due to promoters' breaches of the Future Coupons Private Limited (FCPL) shareholders agreement, but rejected ₹1,436 crore damages sought by Amazon. The tribunal reasoned that though all contractual obligations were fulfilled by Amazon, it would not have recovered its entire investment due to FRL'S deteriorating business value. The tribunal said awarding Amazon damages in full would unfairly shield it from commercial loss it was bound to incur due to the Covid-19 pandemic and the deteriorating value of FRL. Amazon was awarded ₹77.3 crore and Singapore dollars 68,550 as litigation cost. In August 2020, Future Group, facing financial distress and debts of around ₹22,000 crore decided to sell its wholesale, logistics, and warehousing business to Reliance Industries for ₹24,713 crore. Amazon objected to this citing violation of their contractual obligations. Amazon then started arbitration proceedings against Future Group in October 2020, obtaining an emergency arbitration award pausing the Future-Reliance deal. Amazon and Future Group both took the matter to the Delhi High Court, Supreme Court of India, and the National Company Law Appellate Tribunal to resolve the issue. The Competition Commission of India (CCI) had also imposed a fine of ₹200 crore on Amazon for non-disclosure of information on combinations under the Competition Act 2002. Amazon had then moved the Supreme Court against the CCI ruling suspending approval for the ecommerce giant's 2019 deal investment in Future Group on January 10, 2023.
Mint
28-06-2025
- Business
- Mint
Amazon awarded ₹23.7 crore in damages, ₹77 crore towards legal costs by Singapore arbitration body in Future Group case
Amazon has been awarded a sum of ₹ 23.7 crore by the Singapore International Arbitration Centre (SIAC) in damages linked to the tech giant's prolonged battle with Kishore Biyani-led Future Group, a new report has said. As per a report by Bar and Bench, the SIAC ruled that Future Group had breached its contractual obligations to Amazon when it entered into an agreement with Reliance, which was in violation to the terms of the pre-existing agreement. Livemint could not independently verify the details of the sum awarded to Amazon. This article will be updated once there is a confirmation. Amazon had originally sought ₹ 1,436 crore in damages — which is the amount it invested in Future Coupons Private Limited. However, it has only been awarded ₹ 23.7 crore. The company had also sought the legal costs it incurred in the arbitration proceedings as well as cases it had fought before courts and tribunals in India. According to sources quoted by Bar and Bench, the three-member SIAC tribunal held that the Future Group had indeed breached the contract and awarded 60 per cent of the legal costs that Amazon incurred during arbitration proceedings. It also refused to grant any costs related to the initiation or defence of allied proceedings. As per estimates quoted by the legal publication, Amazon awarded ₹ 77 crore and ₹ 6 crore in legal costs and arbitration fees, as opposed to the ₹ 125 crore it spent. The three-member tribunal comprised Prof Albert Jan van den Berg, Prof Jan Paulsson and Senior Counsel Michael Hwang. Future Group and Amazon had been locked in a bitter battle for over a year following a decision by the Indian retailer to sell its Big Bazaar business to Reliance Retail, a subsidiary of Reliance Industries. The deal was opposed by NV Investment Holdings LLC on grounds that its investment of ₹ 1,400 crore in Future Coupons, which is one of promoters of Future Retail, does not allow Future to sell retail assets to certain companies, including Reliance. At stake was whether Amazon can become a bigger force in a $900 billion retail market, with 1.3 billion consumers, than Reliance.
Mint
28-06-2025
- Business
- Mint
Amazon awarded ₹23.7 crore in damages, ₹77 crore towards legal costs by Singapore arbitration body in Future Group case
Amazon has been awarded a sum of ₹ 23.7 crore by the Singapore International Arbitration Centre (SIAC) in damages linked to the tech giant's prolonged battle with Kishore Biyani-led Future Group, a new report has said. As per a report by Bar and Bench, the SIAC ruled that Future Group had breached its contractual obligations to Amazon when it entered into an agreement with Reliance, which was in violation to the terms of the pre-existing agreement. Livemint could not independently verify the details of the sum awarded to Amazon. This article will be updated once there is a confirmation. Amazon had originally sought ₹ 1,436 crore in damages — which is the amount it invested in Future Coupons Private Limited. However, it has only been awarded ₹ 23.7 crore. The company had also sought the legal costs it incurred in the arbitration proceedings as well as cases it had fought before courts and tribunals in India. According to sources quoted by Bar and Bench, the three-member SIAC tribunal held that the Future Group had indeed breached the contract and awarded 60 per cent of the legal costs that Amazon incurred during arbitration proceedings. It also refused to grant any costs related to the initiation or defence of allied proceedings. As per estimates quoted by the legal publication, Amazon awarded ₹ 77 crore and ₹ 6 crore in legal costs and arbitration fees, as opposed to the ₹ 125 crore it spent. The three-member tribunal comprised Prof Albert Jan van den Berg, Prof Jan Paulsson and Senior Counsel Michael Hwang. Future Group and Amazon had been locked in a bitter battle for over a year following a decision by the Indian retailer to sell its Big Bazaar business to Reliance Retail, a subsidiary of Reliance Industries. The deal was opposed by NV Investment Holdings LLC on grounds that its investment of ₹ 1,400 crore in Future Coupons, which is one of promoters of Future Retail, does not allow Future to sell retail assets to certain companies, including Reliance. At stake was whether Amazon can become a bigger force in a $900 billion retail market, with 1.3 billion consumers, than Reliance. The dispute arose in August 2020 when a deb-laden and loss incurring Future Group announced a ₹ 24,713 crore deal to sell its retail, wholesale, logistics and warehousing businesses to Reliance Industries. Amazon had raised immediate objections.
Economic Times
28-06-2025
- Business
- Economic Times
ETtech Explainer: Inside Amazon's victory against Future Group in Reliance deal
The Singapore International Arbitration Centre (SIAC) ruled in favour of Amazon on Thursday, confirming that Future Group violated the contract by making a deal to sell its retail business to Reliance in takes a close look at the long-standing legal battle between Kishore Biyani-led Future Group and Amazon that was awarded only Rs 23.7 crore in damages after the Thursday ruling, which is far less than the Rs 1,436 crore it claimed. What's the case all about? Back in 2020, Future Group, which owns major retail players like Big Bazaar, Food Bazaar, and Easyday, agreed to sell assets worth $3.4 billion to Amazon rival Reliance Industries as the business was hit hard during the pandemic. However, ecommerce giant Amazon had previously invested $200 million in Future Group and had a contractual right to block such a sale. Amazon acquired a 49% stake in Future Coupons, a promoter of Future Group that holds a 9.82% stake in the group's retail arm, Future Retail. The deal implied Amazon indirectly having a 4.81% stake in Future Retail Ltd (FRL). In October 2020, Amazon approached SIAC and obtained a stay on the Future-Reliance deal from the emergency arbitrator. The order was followed by a slew of petitions and counter-petitions between Amazon and Future Group in the Delhi High Court and in the Supreme Court. SIAC is an arbitration centre based in Singapore that handles international disputes, including those involving Indian companies. Emergency arbitration ruling is a temporary relief mechanism to hear urgent matters before the main arbitration panel is even set up. The legal battle begins Amazon objected to the Future Group and Reliance deal on the grounds that its investment in FCPL made it mandatory for FRL to take its consent before parting with any of its assets. Amazon has said that in its agreement with Future, Reliance Retail was specifically named as one of the entities to whom the Indian retailer could not sell its assets. Future Retail further alleged that Amazon interfered with the Rs 23,000 crore deal with Reliance Industries and misused SIAC's interim verdict. The Competition Commission of India (CCI) in December 2021 suspended its approval of Amazon's 2019 deal with Future, denting the US ecommerce giant's attempts to block the sale of Future's retail assets to Reliance Industries. Future Group accused Amazon of violating Indian foreign investment laws and the Foreign Exchange Management Act (FEMA) by misrepresenting facts. CCI later made a statement that Amazon suppressed information while seeking clearances for the deal. ET had reported in November 2021 that Amazon had asked Future Group to withdraw its applications with the CCI. Amazon later filed an appeal against the CCI suspension decision at the National Company Law Appellate Tribunal (NCLAT). Next year in February, Reliance, which had not played a public role in the dispute, suddenly took control of hundreds of Future stores, citing non-payment of rent that was due. However, Future denies any wrongdoing, saying Amazon was illegally seeking to exert control over Future's retail business and said it would face liquidation if the Reliance deal fell through. What's at stake? Amazon has invested $6.5 billion in India. The Future partnership had helped Amazon to boost its online portfolio of grocery deliveries by integrating the Indian company's stores on its website. The recent ruling by the SIAC in favour of Amazon has hit Reliance's growth plans in India's retail market. In a confidential legal filing, Amazon said that Reliance's consolidated position with Future "will further restrict competition in the Indian retail market." What lies ahead? Amazon India's legal head, Rakesh Bakshi, had asked Future Group for generous compensation in return for withdrawing its objections to the Reliance deal. In a final award issued late Thursday night, the three-member tribunal said that the Future-Reliance deal is a breach of the Shareholders' Agreement (SHA) and Share Subscription Agreement (SSA) signed between Amazon and Future Coupons Pvt Ltd (FCPL) in the tribunal found that even if all contractual agreements had been fully performed, Amazon would not have recovered its entire investment due to the declining financial condition of FRL.
Time of India
28-06-2025
- Business
- Time of India
ETtech Explainer: Inside Amazon's victory against Future Group in Reliance deal
The Singapore International Arbitration Centre (SIAC) ruled in favour of Amazon on Thursday, confirming that Future Group violated the contract by making a deal to sell its retail business to Reliance in takes a close look at the long-standing legal battle between Kishore Biyani-led Future Group and Amazon that was awarded only Rs 23.7 crore in damages after the Thursday ruling, which is far less than the Rs 1,436 crore it in 2020, Future Group, which owns major retail players like Big Bazaar, Food Bazaar, and Easyday, agreed to sell assets worth $3.4 billion to Amazon rival Reliance Industries as the business was hit hard during the ecommerce giant Amazon had previously invested $200 million in Future Group and had a contractual right to block such a acquired a 49% stake in Future Coupons , a promoter of Future Group that holds a 9.82% stake in the group's retail arm, Future Retail . The deal implied Amazon indirectly having a 4.81% stake in Future Retail Ltd (FRL).In October 2020, Amazon approached SIAC and obtained a stay on the Future-Reliance deal from the emergency arbitrator. The order was followed by a slew of petitions and counter-petitions between Amazon and Future Group in the Delhi High Court and in the Supreme is an arbitration centre based in Singapore that handles international disputes, including those involving Indian companies. Emergency arbitration ruling is a temporary relief mechanism to hear urgent matters before the main arbitration panel is even set objected to the Future Group and Reliance deal on the grounds that its investment in FCPL made it mandatory for FRL to take its consent before parting with any of its assets. Amazon has said that in its agreement with Future, Reliance Retail was specifically named as one of the entities to whom the Indian retailer could not sell its Retail further alleged that Amazon interfered with the Rs 23,000 crore deal with Reliance Industries and misused SIAC's interim Competition Commission of India (CCI) in December 2021 suspended its approval of Amazon's 2019 dea l with Future, denting the US ecommerce giant's attempts to block the sale of Future's retail assets to Reliance Group accused Amazon of violating Indian foreign investment laws and the Foreign Exchange Management Act (FEMA) by misrepresenting facts. CCI later made a statement that Amazon suppressed information while seeking clearances for the deal. ET had reported in November 2021 that Amazon had asked Future Group to withdraw its applications with the CCI. Amazon later filed an appeal against the CCI suspension decision at the National Company Law Appellate Tribunal (NCLAT).Next year in February, Reliance, which had not played a public role in the dispute, suddenly took control of hundreds of Future stores, citing non-payment of rent that was Future denies any wrongdoing , saying Amazon was illegally seeking to exert control over Future's retail business and said it would face liquidation if the Reliance deal fell has invested $6.5 billion in India. The Future partnership had helped Amazon to boost its online portfolio of grocery deliveries by integrating the Indian company's stores on its website. The recent ruling by the SIAC in favour of Amazon has hit Reliance's growth plans in India's retail market. In a confidential legal filing, Amazon said that Reliance's consolidated position with Future "will further restrict competition in the Indian retail market."Amazon India's legal head, Rakesh Bakshi, had asked Future Group for generous compensation in return for withdrawing its objections to the Reliance a final award issued late Thursday night, the three-member tribunal said that the Future-Reliance deal is a breach of the Shareholders' Agreement (SHA) and Share Subscription Agreement (SSA) signed between Amazon and Future Coupons Pvt Ltd (FCPL) in the tribunal found that even if all contractual agreements had been fully performed, Amazon would not have recovered its entire investment due to the declining financial condition of FRL.
