NCLAT dismisses Amazon’s plea against CCI order; Instructions to deposit ₹ 200 crore fine in 45 days
In December last year, CCI suspended its 2019 approval for Amazon’s deal to acquire 49% stake in Future Coupons Pvt Ltd (FCPL).
In December last year, CCI suspended its 2019 approval for Amazon’s deal to acquire 49% stake in Future Coupons Pvt Ltd (FCPL).
The National Company Law Appellate Tribunal (NCLAT) on June 13 dismissed Amazon’s plea with fair trade regulator Competition Commission of India (CCI) to suspend approval of the e-commerce major’s deal with Future Coupons. The decision was challenged.
A two-member bench of Justices M. Venugopal and Ashok Kumar Mishra upheld the CCI’s findings and directed it to pay the ₹200 crore fine imposed on Amazon by the fair trade regulator within 45 days from Monday.
“This appellate tribunal is in complete concurrence with the CCI,” the two-judge bench said.
In December last year, CCI suspended its 2019 approval for Amazon’s deal to acquire 49% stake in Future Coupons Pvt Ltd (FCPL).
The regulator had said that Amazon suppressed the information while seeking approval for the transaction at that time and also imposed a fine of Rs 202 crore on the company.
FCPL is the promoter of Future Retail Limited (FRL).
Amazon had opposed FRL’s deal to sell assets to Reliance Retail as part of the ₹24,713 crore deal, which has now been closed.
The deal was opposed by the e-commerce major on the grounds of a 2019 transaction whereby it acquired a 49% stake in FCPL.
The NCLAT completed hearing on Amazon’s plea in April this year. All the parties had filed revised notes of presentation with relevant extracts before the Registry.
On Monday, apart from Amazon’s plea, the appellate tribunal had also reserved order on two other petitions in the matter filed by Confederation of All India Traders (CAIT) and All India Consumer Products Distributors Federation (AICPDF).
FRL was part of 19 group companies operating in the retail, wholesale, logistics and warehousing segments that were to be transferred to Reliance Retail as part of the ₹24,713 crore deal announced in August 2020.
The deal was canceled in April by billionaire Mukesh Ambani-led Reliance Industries Ltd.