The Delhi High Court only last week ruled that the sale of Future Retail should be stopped at $ 3.3 billion. While the court noted that its ruling was not yet final, it said that “immediate orders” are needed to protect Amazon’s rights, and ordered that all parties involved in the agreement “uphold [the] status quo “while being consulted.
This week, however, another bank at the same court ruled that it was not necessary to stop the deal after Future Group appealed. The judge has yet to issue the final order, but Future Retail and Reliance Industries currently have the upper hand.
Shares of Future Retail rose 10% on Tuesday.
At the heart of the fight is Future Retail, the cash cow of the Indian conglomerate Future Group. The retail unit contains brands such as Big Bazaar, a popular supermarket chain.
In August 2019, Amazon invested in a Future Group entity that gave a 4.8% stake in Future Retail on September 30 last year, according to the submission of securities. The deal gave Amazon the right of first refusal to acquire more shares in Future Retail, according to one of the documents.
Amazon has argued that the agreement between 2019 and the Future Group entity includes a non-compete clause, a person familiar with Amazon’s thinking told CNN Business last year. The clause contained 30 restricted parties with which Future Retail and Future Group could not do business, and Reliance was on the list, the person said.
While the latest move on Monday allows the agreement to continue, the battle is far from over. The Delhi Supreme Court has yet to deliver its final ruling, which could jeopardize Reliance and Future’s plans again, according to Bharat Chugh, a Supreme Court lawyer specializing in arbitration law.
Eventually, the country’s high court can hear the case, if both sides appeal. Future Retail, Reliance and Amazon did not immediately respond to requests for comment.
– CNN’s Rishi Iyengar contributed to this report.