|
|
|
CCI gives nod to Future-Reliance deal, setback for Amazon
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 21 Nov, 2020
Despite Amazon's objections, the Competition Commission of India (CCI) has cleared the Future-Reliance deal.
Announcing
the decision on Twitter on Friday, CCI said, "Commission approves
acquisition of retail, wholesale, logistics & warehousing businesses
of Future Group by Reliance Retail Ventures Limited and Reliance Retail
and Fashion Lifestyle Limited."
The Jeff Bezos-led Amazon had
claimed before the CCI that the so called "injunction" of the Emergency
Arbitrator was binding on CCI and that CCI should stop processing the
application and should not give its approval. But CCI has now gone ahead
and approved the deal.
Sources said that none one other than a
writ court in India can bind the CCI and "injunct" it. No regulator can
be bound by the so called "injunction" of the arbitrator, they pointed
out.
It has been pointed out that Future Retail Limited (FRL) is
a listed company and Section 230-234 of the Companies Act is a code in
itself.
A company and its shareholders/creditors have
unrestricted right to enter into a scheme of arrangement. The only
requirement is that the scheme has to be passed with requisite majority.
If a shareholder has a grievance, he can vote against or
represent the matter before the NCLT, provided the shareholder has the
minimum prescribed shareholding to object. The NCLT will take a decision
after hearing such objection, if any, from the shareholders or the
creditors who are eligible to object, in the interest of the
shareholders, creditors and the public.
Amazon, which is not
even a shareholder of FRL, was trying to stop the scheme by waving a so
called "injunction" from a foreign Emergency Arbitrator.
Sources
said Amazon would know that it cannot get such an order from the Indian
courts in view of the clear provisions of the Companies Act.
Observers said that If Amazon feels there is a breach of some agreement by Biyanis, their recourse can only be to Biyanis.
Amazon
cannot play with the lives of 50,000 employees, who will lose their
jobs if the scheme is not implemented. Amazon's intent is only to cause
delay by which time the value of Future will erode, sources said.
If
Future group goes into bankruptcy, Rs 30,000 crore of public money will
be lost. Amazon has not approached the Indian courts only because it
knows it cannot get an order to stop the scheme, the sources added.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|