NCLAT upholds CCI order suspending Amazon deal with Future Coupons
Amazon had opposed FRL's deal to sell assets to Reliance Retail as part of a Rs 24,713-crore deal, which has now been called off. The deal was opposed by the e-commerce major on the basis of its 2019 transaction, whereby it had acquired a 49 percent stake in FCPL.
The National Company Law Appellate Tribunal (NCLAT) on Monday upheld the December 2021 order by the Competition Commission of India (CCI) suspending Amazon's 49 percent stake in Future Coupons Pvt Ltd (FCPL), the promoter of the Future Group.
Amazon, however, will have the legal remedy of issuing a challenge to the NCLAT order in the Supreme Court, sources told CNBC-TV18.
Dismissing Amazon's plea challenging the order, the NCLAT on Monday validated the findings of the CCI and also directed Amazon to pay the penalty of Rs 202 crore imposed by the CCI within 45 days. The CCI had said Amazon suppressed information while seeking clearances for the transaction.
Amazon had opposed Future Retail's deal to sell assets to Reliance Retail based on its 2019 acquisition of FCPL stake. The Rs 24,713-crore Future Retail and Reliance Retail deal has since been called off (in April).
Future Retail was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713 crore deal announced in August 2020.
Meanwhile, Praveen Khandelwal, Secretary-General of the Confederation of All India Traders, said that the body welcomed the order, which "clearly states wrongdoings of Amazon".
"The order has proved the dictum: Truth always prevails. It gives a strong signal to one and all that India is not a banana republic and laws are not weak," said CAIT National President BC Bhartia and Khandelwal in a joint statement. They further said that any move to captivate Indian e-commerce and retail trade by anyone would not be succeeded under any circumstances, and no "second edition of East India Company will be allowed in India".
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
First Published: Jun 13, 2022 12:38 PM IST
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