Future Group shares tank up to 16%, after Supreme Court verdict in Amazon case

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Shares of Future Retail plummeted 10% and were locked in the lower circuit at Rs 52.55 apiece on Friday after the Supreme Court ruled in favour of Amazon in its tussle with the company.

Amazon and Future had been locked in legal battles over the deal, with the US-based firm accusing the Future Group of violating pre-existing contracts when it sold its assets to rival Reliance Industries. Future Group, however, has denied any wrongdoing.

The Bench of Justices Rohinton Fali Nariman and BR Gavai held that the order of an emergency arbitrator is enforceable in India, under Section 17(2) of the Arbitration Act. “We have framed two questions and answered them as Emergency Arbitrator’s award holds good and can be enforced under Section 17(2). The appeal is allowed,” Justice Nariman said reading out the judgment, according to law platform Bar & Bench.

A Division Bench of the Delhi High Court had stayed an order passed by the single judge. The single judge order of the high court had upheld the award of an emergency arbitrator, directed attachment of the properties and restrained Future Retail Limited from going ahead with the Rs 24,713 crore merger with Reliance Retail, according to Bar & Bench.

Following this development, shares of Future Group are reeling under pressure. Apart from Future Retail, shares of Future Enterprises were also locked in a lower circuit of 10% at Rs 9.20 per share. Even Future Supply Chain Solutions and Future Lifestyle Fashions were locked in 10 per cent lower circuits at Rs 74.30 and Rs 60.70, respectively on BSE. While Future Consumer stock tanked upto 16 per cent to Rs 6.66.

Likewise, shares of Reliance Industries lost 2.31 per cent and were quoting at Rs 2,084 per share. The counter was trading at Rs 2,146 before the outcome of the case.