The Retail Saga: Future-RIL vs Amazon battle explained

On October 25, Amazon won an interim award against its partner Future Group selling retail business to Mukesh Ambani’s Reliance Industries Ltd for Rs 24,713 crore after Singapore International Arbitration Centre (SIAC) — a single-judge arbitration panel — put the deal on hold.

The deal, Amazon alleges, breaches a 2019 deal it had with a Future unit. However, Future Group claims that it had complied with all agreements and “cannot be held back” by the arbitration proceedings.

What is the Amazon-Future Group deal?

Amazon, last year, had bought a 49 per cent stake in one of Future’s unlisted firms worth nearly $200 million, Future Coupons Ltd, with the right to buy into flagship Future Retail after a period between three and 10 years. Future Coupons owns a 7.3 per cent stake in Future Retail.