“We have utmost respect for the Indian legal system and appreciate the interim order of the … Delhi High Court,” an Amazon spokesperson told Fintech Zoom Business.
Reliance declined to comment.
Amazon argued that the 2019 deal struck between it and the Future Group entity included a non-compete clause, a person familiar with Amazon‘s perspective told Fintech Zoom Business in October last year. The clause listed 30 restricted parties with which Future Retail and Future Group could not do business, and Reliance was on that list, the person said.
Amazon sought to enforce that agreement through the Singapore International Arbitration Centre (SIAC), with the Southeast Asian country often seen as a neutral jurisdiction to settle disputes. The SIAC emergency arbitrator ordered a temporary halt to the deal last October.
While Future Group had raised questions about the validity of the Singapore arbitration court’s order in India, the Delhi High Court declared Tuesday that the order is “enforceable.”
Ambani definitely has the resources to match Amazon. His tech subsidiary, Jio, has more than 400 million users, and Reliance Retail has more than 12,000 stores across India.
And while it’s currently advantage Amazon, that battle is far from over.