Delhi HC order: Setback for Future Group but bigger jolt for Amazon

In a ruling where both the parties can claim some relief as well as disappointment, the Delhi High Court on Monday rejected Future Group’s plea that Amazon be restrained from writing to regulatory authorities not to accord approval to the former’s deal with Reliance Retail. However, the court’s order also said that the Future-Reliance Retail deal was in accordance with Indian laws, thus dealing a blow to Amazon’s claim. What can be more damaging to Amazon is that the court also said that its deal with Future Coupons – prior to Future-Reliance deal – is in the nature of control and therefore required prior government approval in the absence of which it is in violation of FEMA/FDI rules.