Future Group Shares Fall After Court Halts Rs 24,000 Crore Reliance Deal

2021-03-19 05:38:54

Future Group Shares Fall After Court Halts Rs 24,000 Crore Reliance Deal

Shares of Kishore Biyani-led Future Group companies fell as much as 10 per cent after the Delhi High Court upheld the Singapore International Arbitration Centre’s order restraining Future Retail from going ahead with its Rs 24,713 crore deal with Reliance Retail to sell its business, which was challenged by US-based e-commence giant Amazon.

Shares in Future Retail tumbled 10 per cent to Rs 55.85, Future Enterprises declined 9 per cent to Rs 8.65, Future Consumer fell 9.68 per cent to Rs 6.44, Future Lifestyle Fashions was locked in a 10 per cent lower circuit at Rs 64.85 and Future Supply Chain Solutions dropped 5 per cent to Rs 80.

Justice JR Midha directed Kishore Biyani-led Future Retail not to take further action on the deal and held that the group willfully violated the Singapore arbitrator’s order.

The high court directed the Future Group and its directors to deposit Rs 20 lakh cost in Prime Minister’s Relief Fund for providing COVID-19 vaccines to financially disadvantaged senior citizens.

The court directed the presence of Mr Biyani and others before it on April 28 as also attachment of their properties.

The high court’s order came on Amazon’s plea requesting enforcement of the award by the Singapore tribunal on October 25, 2020, restraining Future Retail from going ahead with the deal with Reliance Retail.

Amazon, in its interim plea, has sought to restrain FRL from taking any steps to complete the transaction with entities that are a part of the Mukesh Dhirubhai Ambani Group.

Future Group and Amazon have been locked in a battle after the US-based company took Future Retail into the emergency arbitration over alleged breach of a contract between them.

(With inputs from PTI)

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