03 March, 2022

Amazon and Future Group are ready to reach an out-of-court settlement! The Supreme Court gives a 12-day deadline

After running the case in the courts for almost two years, now Future Group and Amazon have assured to settle the matter out of court. After running the case in the courts for almost two years now Future Group and Amazon have given assurance of settling the matter outside the court. Both sides have agreed to talks.  In the Supreme Court, the lawyer of Future Group and Amazon said that they could negotiate outside the court for settlement and they are ready. Meanwhile, Reliance Industries (RIL) has started taking control of the stores in Big Bazaar. In the past, many stores of Big Bazaar were closed. The news is that in this case Amazon can take legal action.

What is Reliance-Future Deal

Future Retail, the company of Future Group, has a big retail brand like Big Bazaar. On the other hand, Reliance Industries aspires to increase its intervention in the retail market of the country. In view of this, a deal of Rs 24,713 crore was done between the two companies on 29 August 2020. After the completion of this deal, Reliance will get Big Bazaar as well as other members of Future Group. Ownership of retail, warehouse, logistics and wholesale businesses will be available.

What is the dispute with Amazon

Now there is a problem with Amazon in this deal. In fact, Future Coupons has a stake in Future Retail, another company of Future Group Group. In 2019, Amazon bought 49% stake in this future coupon. Along with this, he also got the right that whenever Future Group wants to sell the stake of the company, Amazon will have the first right to buy it.

This is what stops Kishore Biyani's Future Group from entering into deals with Reliance. To stop the Future-Reliance deal, Amazon has been saying that Future has violated the terms of the 2019 deal.

-----------------

No comments: