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Business Standard
3 hours ago
- Business
- Business Standard
SIAC rules for Amazon in Future case, awards ₹23.7 crore damages
Amazon wins arbitration against Future Group at SIAC, but tribunal awards a fraction of claimed damages citing FRL's declining value and Covid-related business loss New Delhi The Singapore International Arbitration Centre (SIAC) has awarded ₹23.7 crore in damages, besides arbitration and litigation costs, to Amazon in its long-running dispute with the Kishore Biyani-led Future Group. The three-member bench of the tribunal held that Future Group had breached the terms of its contract with Amazon by entering into a transaction with Reliance. It also told 11 promoters and parties of the Future Group, including Kishore Biyani, to pay the amount along with interest from March 9, 2022 till now. The dispute pertains to a decision by the Future Group to sell its Big Bazaar retail business to Reliance Retail, a subsidiary of Reliance Industries. Amazon had in 2022 argued before the Supreme Court of India that its ₹1,400-crore investment in the Future Group does not allow the latter to sell its assets to certain companies, which includes Reliance. Amazon had, however, sought ₹1,436 crore damages, citing Future Retail Limited's (FRL) 'deteriorating value.' SIAC ruled that Amazon was entitled to damages due to promoters' breaches of the Future Coupons Private Limited (FCPL) shareholders agreement, but rejected ₹1,436 crore damages sought by Amazon. The tribunal reasoned that though all contractual obligations were fulfilled by Amazon, it would not have recovered its entire investment due to FRL'S deteriorating business value. The tribunal said awarding Amazon damages in full would unfairly shield it from commercial loss it was bound to incur due to the Covid-19 pandemic and the deteriorating value of FRL. Amazon was awarded ₹77.3 crore and Singapore dollars 68,550 as litigation cost. In August 2020, Future Group, facing financial distress and debts of around ₹22,000 crore decided to sell its wholesale, logistics, and warehousing business to Reliance Industries for ₹24,713 crore. Amazon objected to this citing violation of their contractual obligations. Amazon then started arbitration proceedings against Future Group in October 2020, obtaining an emergency arbitration award pausing the Future-Reliance deal. Amazon and Future Group both took the matter to the Delhi High Court, Supreme Court of India, and the National Company Law Appellate Tribunal to resolve the issue. The Competition Commission of India (CCI) had also imposed a fine of ₹200 crore on Amazon for non-disclosure of information on combinations under the Competition Act 2002. Amazon had then moved the Supreme Court against the CCI ruling suspending approval for the ecommerce giant's 2019 deal investment in Future Group on January 10, 2023.
Economic Times
a day ago
- Business
- Economic Times
Singapore International Arbitration Centre rules in favour of Amazon in Future Group case
Amazon claim trimmed Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Singapore International Arbitration Centre (SIAC) has ruled in favour of Amazon in its long-standing legal battle with Kishore Biyani-led Future Group , holding that Reliance Retail- Future merger deal breached its pre-existing contract. However, Amazon has managed to get minuscule damages of Rs 23.7 crore against claimed amount of Rs 1436 a final award issued late Thursday night, the three-member tribunal said the 2020 board resolution by Future Retail Ltd (FRL) approving the sale of its retail, wholesale, and logistics assets to Reliance was in breach of contractual obligations under the Shareholders' Agreement (SHA) and Share Subscription Agreement (SSA) signed between Amazon and Future Coupons Pvt Ltd (FCPL).While Amazon had sought damages of Rs 1,436 crore, the tribunal awarded a significantly smaller sum of Rs 23.7 crore. It directed 11 promoters and parties, including Kishore Biyani , to jointly and severally pay the amount, along with interest at 10.3% annually (compounded) from March 9, 2022, until full payment. The parties are also liable to bear Amazon's arbitration and litigation tribunal noted that 835 of FRL's 1,534 retail stores were transferred in a manner that breached Amazon's contractual rights stemming from its 2019 acquisition of 49% in FCPL for Rs 1,400 crore. FCPL held a 10% stake in Tribunal held that Amazon was entitled to damages due to the promoters' repudiatory breaches of the Future Coupons Pvt Ltd (FCPL) Shareholders' Agreement (SHA), but it rejected the quantum of Rs 1,436 crore claimed by the had based its claim on "reliance loss," arguing that it should be compensated for the full value of its 2019 investment in FCPL including Rs 1,430 crore paid under the Share Subscription Agreement and Rs 5 crore in associated 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 Future Retail Ltd (FRL) the ultimate beneficiary of Amazon's stake in the impact of the COVID-19 pandemic and FRL's deteriorating business value, the Tribunal observed that awarding full damages would unfairly shield Amazon from a commercial loss it was likely to incur regardless.'Such an award would essentially allow Amazon to escape a bad bargain,' the final award the Tribunal awarded Amazon total legal and related costs of Rs 77.3 crore and SGD 68, Amazon-Future legal dispute began in October 2020, when SIAC's emergency arbitrator restrained Future Retail from proceeding with the Reliance deal. The Future Group had challenged the arbitration, citing the Competition Commission of India's 2022 suspension of the Amazon-FCPL deal.
Time of India
a day ago
- Business
- Time of India
Singapore International Arbitration Centre rules in favour of Amazon in Future Group case
The Singapore International Arbitration Centre (SIAC) has ruled in favour of Amazon in its long-standing legal battle with Kishore Biyani-led Future Group , holding that Reliance Retail- Future merger deal breached its pre-existing contract. However, Amazon has managed to get minuscule damages of Rs 23.7 crore against claimed amount of Rs 1436 crore. In a final award issued late Thursday night, the three-member tribunal said the 2020 board resolution by Future Retail Ltd (FRL) approving the sale of its retail, wholesale, and logistics assets to Reliance was in breach of contractual obligations under the Shareholders' Agreement (SHA) and Share Subscription Agreement (SSA) signed between Amazon and Future Coupons Pvt Ltd (FCPL). While Amazon had sought damages of Rs 1,436 crore, the tribunal awarded a significantly smaller sum of Rs 23.7 crore. It directed 11 promoters and parties, including Kishore Biyani , to jointly and severally pay the amount, along with interest at 10.3% annually (compounded) from March 9, 2022, until full payment. The parties are also liable to bear Amazon's arbitration and litigation costs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The tribunal noted that 835 of FRL's 1,534 retail stores were transferred in a manner that breached Amazon's contractual rights stemming from its 2019 acquisition of 49% in FCPL for Rs 1,400 crore. FCPL held a 10% stake in FRL. The Amazon-Future legal dispute began in October 2020, when SIAC's emergency arbitrator restrained Future Retail from proceeding with the Reliance deal. The Future Group had challenged the arbitration, citing the Competition Commission of India's 2022 suspension of the Amazon-FCPL deal. Live Events
India.com
11-06-2025
- Business
- India.com
Meet man who was once 'retail king' of India, lost everything due to one mistake, owner of Rs 152257647298 is now bankrupt, name is....
Kishore Biyani (File) Kishore Biyani, the founder of Big Bazaar– India's first retail store– and the Pantaloons clothing brand, was once called the 'retail king' of India as his chain of retail stores earned hefty profits, often registering daily earnings well in excess of Rs 30 crore or more. However, a single mistake toppled the retail empire built by Kishore Biyani, bankrupted him, and sent him to the deepest pits of obscurity. Let us delve into the shocking riches to rags story of Kishore Biyani: The birth and rise and fall of Pantaloons The story begins in 1983, when after finishing college, Kishore Biyani decided to start his own venture, instead of joining his father's business. In college, Biyani found that stone wash trousers were wildly popular among young men in those days, and fabric's demand was increasing in India at a rapid pace. Realising the demand, Biyani purchased 200 meters of the fabric from Jupiter Mill, and sold it to earn a hefty profit. However, soon Kishore Biyani stumbled upon the idea of manufacturing and trading fashionable stone wash trousers instead of selling the fabric to other manufacturers, thus establishing the Pantaloons brand. Pantaloons grew at a rapid pace, and soon opened its first retail showroom in Kolkata, where the brand launched women's and kids' clothing along with men's apparel. The store's light colors, lighting, and the overall look and feel, were designed to evoke a calming shopping experience, and soon Pantaloons made Kishore Biyani the undisputed king of fashion retail in the country. How Big Bazaar made Kishore Biyani India's 'retail king'? After tasting success in fashion retail with Pantaloons, Kishore Biyani set his sights on capturing the growing grocery market. Biyani observed that people only spend about 8 percent of their income on clothes, and decided to sell groceries, stationery, food items, and jewelry along with clothing. Biyani's unique plan was to make everything, from clothes to groceries and kitchen essentials, available to consumers under a single roof, and thus Big Bazaar, India's first retail store, was born. Big Bazaar was targeted towards the growing middle class, so instead of an expensive, posh-looking store, Biyani decided that his retail store would have the feel of a regular grocery shop, where the sales persons were dressed in regular clothes, instead of bow ties and suits. The name Big Bazaar resonated with the common man, and made enhanced its appeal, and soon the brand grew into a behemoth that minted over Rs 30 crore on a daily basis. Kishore Biyani wanted to compete with local grocery shops, so his strategy revolved around offering cheaper prices than traditional grocery stores. Beyond Big Bazaar, Biyani wanted to establish a place where consumers could shop for all types of goods under a single roof, and thus opened the Central Mall in Bengaluru in 2004. The 20000 square meters mall had everything from footwear to home decor, food, grocery, jewellery stores, food courts, restaurants, pubs, and movie theaters. Biyani's Future Group– the holding company which had all his brands like Big Bazaar, Central Mall, Easy Day, and Pantaloons, under its umbrella– had the largest share in India's retail sector, and made Biyani the 'retail king' of India. The fall of Kishore Biyani After conquering the retail industry, Kishore Biyani desired to venture into every business which directly dealt with the consumer, but this proved to be downfall because his unplanned expansion resulted in mounting debt which ultimately swelled to over Rs 12000 crore. Soon, Biyani was forced to sell the Central Mall for Rs 476 crore, and while Big Bazaar kept going for year despite large debts, its sales crashed, and so did Biyani's retail empire, during the 2008 recession. In March 2019, Biyani sold the Pantaloons brand to the Aditya Birla Group for Rs 1600 crore, while banks froze the assets and shares of Future Group after he failed to clear debts. Later, Kishore Biyani sold Big Bazaar to Reliance Retail– Indis's largest retailer run by billionaire Mukesh Ambani's daughter Isha Ambani. Reliance has now renamed Big Bazaar to Smart Bazaar. Kishor Biyani net worth At the peak of his business success, Kishore Biyani had net worth pegged at USD 1.78 billion in 2019, according to Forbes. However, after bankruptcy, his current wealth is believed to be a fraction of the fortune he once owned.
