Approval for Future-Reliance deal was illegally obtained: Amazon writes to CCI

Amazon has asked the Competition Commission of India (CCI) to recall its approval given to the Future-Reliance deal in light of orders passed by courts and tribunals on the same..The letter sent to the competition regulator stated that Future Retail Limited (FRL) pursued approval for the deal in contravention of the Emergency Arbitrator's award as well as orders passed by the Supreme Court."FRL’s pursuit of the approval for the Impugned Transaction before the Hon’ble Commission was in clear breach of the directions in the EA Order. The CCI Approval for the Impugned Transaction was thus illegally obtained and is a nullity in the eyes of law.".Amazon has made reference to the Emergency Arbitrator (EA) award passed on October 25, 2020, which ordered interim relief injuncting FRL, Future Coupons Private Limited (FCPL) and other members of the Biyani Group from taking any steps to complete the transaction with the Reliance Group. The letter stated,"In spite of the binding directions contained in the EA Order, FRL continued to pursue the approval for the Impugned Transaction by terming the EA Order a “nullity”. The FRL Letter was thus issued in direct contravention of the EA Order, in a brazen attempt to subvert the rule of law. Pursuant to such contumacious conduct, FRL misled the Hon’ble Commission, and precipitated the grant of the CCI Approval for the Impugned Transaction.".It was further pointed out that the Supreme Court in August this year upheld the legality and enforceability of the EA award.FRL had subsequently approached Arbitral Tribunal to vacate the EA order. However, the Tribunal passed an order dismissing FRL's challenge to its jurisdiction to decide the Future-Reliance deal.Moreover, Amazon highlighted that in September this year, the Supreme Court had stayed the proceedings in the dispute between Amazon and FRL pending before the Delhi High Court..Amazon thus told the CCI that the directions in the EA order have thus continued to bind and operate against FRL from October 25, 2020, and have now been re-affirmed by the Arbitral Tribunal. These directions constitute an order of a Court under Section 17(2) of the Arbitration & Conciliation Act, the e-commerce giant stated..In this light, Amazon has asked CCI to recall its approval given to the Future-Reliance deal and to pass injunctions against Future Group companies in terms of the EA order."Therefore, considering the above, we request you to act in aid of the binding injunctions operating against FRL, FCPL and the Biyanis, in terms of the EA Order and the Order on Vacate Application and recall the CCI Approval for the Impugned Transaction forthwith. We are also requesting for a personal hearing to apprise the Hon’ble Commission of these material factual developments which demonstrate that the CCI Approval for the Impugned Transaction is a nullity in the eyes of law."