Latest news with #FutureGroup
Mint
5 hours ago
- 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
8 hours ago
- 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
8 hours ago
- 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
8 hours ago
- 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.
Economic Times
08-05-2025
- Business
- Economic Times
Generali readies capital infusion plans for India JV
Generali Group plans to inject capital into its Indian venture to expand operations, anticipating the increase in foreign direct investment in the insurance sector to 100%. While the specifics of the infusion are pending shareholder agreement finalization, Generali intends to maintain a 74% equity stake and collaborate with Central Bank, its new partner after the Future Group's insolvency proceedings. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Banking/Finance 1. Generali readies capital infusion plans for India JV Milan: Italy's Generali Group has drawn up plans for capital infusion in its Indian venture to scale up its business in the country. India is set to raise foreign direct investment in the insurance sector to 100% from 74%, which would allow this capital infusion."We do expect that there will likely be a need for capital injection but we will have a better idea on that once the shareholder agreements are concluded, which are still in process," Rob Leonardi, Regional Officer, Generali Asia, told ET on the sidelines of the 58th annual meeting of the Asian Development Bank declined to give details about the quantum or time frame of the capital infusionGenerali forayed into India's insurance sector in 2007 with a tie-up with the Future Group. Central Bank has acquired shares from the Future Group as part of the insolvency process including 24.91% shareholding in Future Generali India Insurance and 25.18% shareholding in Future Generali India Life said the group will continue with 74% equity even as the option to raise it 100 % is expected (with the increase in FDI cap). "We are very much looking forward to developing our partnership with Central Bank and working with them," he Indian government is expected to introduce the Insurance amendment bill to raise the foreign investment limit to 100% in the upcoming monsoon is the second largest market for the group in Asia, he noted.(The reporter is in Milan at the invitation of ADB)
