Delhi HC rules Amazon’s attempt to control Future violative of FEMA FDI

The Delhi High Court has ruled that US e-commerce giant Amazon’s attempt to control Future Retail through a conflation of agreements it has with an unlisted unit of the Indian company will be violative of the FEMA FDI rules, the Kishore Biyani-led firm said on Wednesday.

Giving out its analysis of the Delhi High Court’s December 21 judgment, Future Retail Ltd (FRL) in a filing to stock exchanges said its board approving a Rs 24,713 crore deal to sell assets to Reliance Retail has been held “valid in law” by the court.

It said the entire legal basis of the emergency arbitration award that Amazon secured to halt the Rs 24,713 crore deal, “stands vitiated”.