India’s Supreme Court has barred the Future Group’s $3.4bn sale of retail assets to Reliance Industries Ltd. which was supposed to boost Amazon’s stakes in the country.
Indian stock exchanges and the country’s antitrust watchdog had already greenlighted the sale but the National Company Law Tribunal (NCLT) has the final word on whether it goes through.
“According to us, this order (of the high court) seems to have decided the main appeal let alone be just the maintainability at the interim stage itself,” said the Supreme Court.
The Supreme Court said that the NCLT can continue hearing and reviewing the case but must not let it through until further orders.
”In the meantime, the NCLT proceedings will be allowed to go on but will not culminate in any final order of sanction of the scheme,” announced the Supreme Court.
Amazon has accused the Future Group of violating a contract for the sale of assets to Ambani’s Reliance Industries last year and took the case to court in Singapore.
Future defended that it would be disadvantageous to them if the transaction fails.
Because of the announcement, Future stock fell as much as 10% while reliance dipped 2.8%.