India’s top court has ruled in favour of Amazon during a decision that would shape the expansion of e-commerce in India for years to return .
The Supreme Court upheld an interim order against India’s biggest retailer, Reliance, buying the country’s second biggest retailer, Future Group.
The court said the October order by a Singapore-based arbitration panel to place the deal on hold is enforceable under Indian law.
Future Group challenged the decision .
It approached the supreme court in Delhi, contending the deal was crucial to stay the corporate afloat after the coronavirus pandemic upended business.
But the court blocked the deal. An appeal led to a second order which said the deal could proceed.
Amazon approached the Supreme Court, whose verdict now stops the deal from browsing .
Future Group made a deal to sell $3.4bn (£2.44 bn) worth of retail assets to Reliance Industries earlier this year.
Had the deal materialised, it might have given Reliance’s retail arm access to over 1,800 stores in additional than 420 cities in India, also as Future Group’s wholesale business and logistics arm.
Amazon objected to the present . Since 2019, the e-commerce giant has owned a 49% stake in Future Coupons, which provides it an indirect ownership stake in Future Retail.
The online shopping giant argued that as a neighborhood of that purchase, Future Group is prohibited from selling to a get group of Indian companies, including Reliance.
In October 2020, Amazon won an interim order by Singapore’s Emergency Arbitrator that put the deal on hold.
