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Business EYE AUGUST 06, 2021 | The Indian Eye 28

future of commerce:

Big victory for amazon in its e-tailing

tussle with reliance retail

Future Retail is expected to file a review petition against the order pronounced by the

Supreme Court and an appeal under the Arbitration Act

Our Bureau investigation against them into alleged com-

New Delhi/Singapore petition law violations.
The appeal is against the High Court or-
n a big victory for e-commerce giant Am- der of allowing CCI to probe Amazon India
azon, the Supreme Court on Friday up- and Walmart-owned e-commerce firm Flip-
Iheld Singapore’s Emergency Arbitrator kart for alleged competition law violations
(EA) award restraining a deal between Fu- in smartphone sales on the two websites.
ture Retail Ltd and Reliance Retail. Ama- The High Court had also dismissed the
zon and Future Retail have been engaged in pleas of e-commerce firms that sought to
a bitter legal fight over the latter’s Rs 24,713 quash the CCI’s probe. Challenging the or-
crore asset sale deal with Reliance Retail. der, they both approached the top court. The
The decision comes as a major blow to the order of the High Court had come on a com-
Kishore Biyani-led Future Retail as ques- plaint by Delhi Vyapar Mahasangh, whose
tions remain regarding the future of the deal. members comprise many traders dealing
According to reports, the Singapore In- in smartphones and related accessories.
ternational Arbitration Centre (SIAC) -- In another development, online food de-
which pronounced the initial award in the livery platform Swiggy said on Thursday it
case -- has concluded the final hearing over has signed an agreement with Reliance BP
Amazon’s plea and a final judgement in the Mobility Ltd (RBML) to build an ecosystem
matter is awaited. for electric vehicle battery-swapping stations
In August last year, Reliance Retail Ven- across the country.
tures Ltd (RRVL) had said it will acquire The partnership aims to synergise their
the retail and wholesale business, and the strengths of scale, reach, and technology in
logistics and warehousing business of Fu- creating a greener and cost-effective solu-
ture Group for Rs 24,713 crore. The scheme CEO of Amazon Jeff Bezos visits the Taj Mahal tion for delivery fleets through innovative
of arrangement entails the consolidation of in Agra during his visit to India (ANI) business models. Additionally, Swiggy has
Future Group’s retail and wholesale assets also partnered with Hero Lectro, a leading
into one entity Future Enterprises Ltd and to conclude the deal and protect the inter- e-cycle manufacturer, and Fast Dispatch
then transferring it to Reliance Retail. ests of its stakeholders and workforce. The Logistics, a leading last-mile delivery player
However, Amazon objected to the deal. Future Group company noted that the Ar- in the United Kingdom, to enable end-to-
In August 2019, Amazon had agreed to pur- bitral Tribunal at the SIAC has concluded end delivery of Swiggy orders through cargo
chase 49 per cent of one of Future’s unlisted hearings on the questions that whether the e-cycles.
firms, Future Coupons Ltd (which owns 7.3 interim award of the EA should continue The trails are currently running in Ben-
per cent equity in BSE-listed Future Retail and whether FRL is at all a party in the arbi- galuru, New Delhi and Hyderabad. They
Ltd through convertible warrants), with the tration proceedings. are aimed towards Swiggy’s commitment to
right to buy into the flagship Future Retail The deal’s failure is likely to push Future cover deliveries spanning 8 lakh km every
after a period of three to 10 years. Retail towards liquidation and impact liveli- day through EVs by 2025.
A legal expert told news agency PTI that hoods of 50,000 employees and 6,000 small- Making deliveries through EVs is ex-
Future Retail is expected to file a review pe- and medium-sized vendors. pected to lower the running cost of vehicles
tition against the order pronounced by the Future Retail and Amazon will have to by up to 40 per cent, leading to higher earn-
Supreme Court and an appeal under section fight it out in Singapore court. ings for Swiggy’s delivery partners.
37 (20) of the Arbitration Act against the The Supreme Court on Friday adjourned “As we continue to work towards providing
EA’s interim award before the Delhi high for August 9 the hearing of a plea filed by our consumers with greater convenience, we
court to obtain appropriate relief to pursue e-commerce giants Amazon and Flipkart are also mindful of the environmental impact
its deal with Reliance. challenging an order of Karnataka High of our operations and are taking the neces-
In a statement, the company said that Court, which had allowed the Competition sary steps to make our journey more sustain-
it intends to pursue “all available avenues” Commission of India (CCI) to continue its able,” said Swiggy CEO Sriharsha Majety.

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