InvestorQ : What is the latest High Court order that Future group has sought in the Amazon-RIL case?
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What is the latest High Court order that Future group has sought in the Amazon-RIL case?

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4 weeks ago
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Over the last few days you would have seen the overhang of the dispute between Amazon and RIL over the Future Enterprises acquisition issue. That has led to a sharp correction in the stock price of Reliance Industries too. Now there is a new twist.

The Future group added a new dimension to the Amazon – Reliance story. It has gone ahead and filed a caveat against Amazon in the Delhi High Court seeking to prevent Amazon from taking any action to prevent the proposed merger deal between Future Group and Reliance Retail Ventures Limited or RRVL.

This caveat filed in the Delhi High Court is a preventive move against any early action that might be contemplated by Amazon. Now, Amazon has claimed right of first refusal in the Future deal due to its holdings in Future Coupons, which gives indirect ownership of FEL.

What exactly does this Caveat do? Not much, except that this caveat is intended to ensure that no adverse verdict is passed against the Future group by any court or regulatory authority without giving them a proper hearing. In short, ex-parte orders are not possible.

The Future group has served a copy of the caveat petition to Amazon too. In fact, Future Group has averred that the order of the Singapore arbitrator was not binding on Future group. This entire fracas pertains to the Rs.25,000 crore of FEL with RRVL.

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