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Future-Amazon case: SC seeks banks' response on FRL's plea; sets aside Delhi HC's ruling

Mint   Economic Times  

The Supreme Court has asked a consortium of banks to file an affidavit after Kishore Biyani-led Future Group Ltd ((FRL) sought the quashing of their warnings against the company for starting insolvency proceedings against it. FRL had cited its ongoing dispute with US-based e-commerce giant Amazon.com, which stalled its INR 24,713 crore retail asset sale deal with Reliance Retail. It had requested the SC to direct lenders to not declare the company a non-performing asset (NPA). The SC also set aside orders by the Delhi High Court, which had declined a stay on an arbitration tribunal decision refusing to interfere with the Emergency Award (EA) of the Singapore International Arbitration Centre (SIAC). The SIAC had granted relief to US e-commerce major Amazon by restraining Kishore Biyani's Future Group from going ahead with the merger deal of Future Retail Ltd (FRL) with Reliance Retail. In last February, the Delhi HC had said Future Retail, Future Coupons and group founder Biyani were in violation of an October interim order of the SIAC. The HC had also imposed an INR 20 lakh fine on Biyani and directed Future Group to approach the authorities to recall all approvals granted to the Future-Reliance deal.