NCLAT admits Amazon's appeal against CCI order

NCLAT admits Amazon's appeal against CCI order

The CCI had suspended its deal with Future Coupons Private Limited

The bench of the National Company Law Appellate Tribunal (NCLAT) comprising Justice M Venugopal and Justice V P Singh has admitted Amazon's plea challenging the order of the Competition Commission of India (CCI). The CCI had suspended Amazon's deal with Future Coupons Private Limited (FCPL).

The CCI had passed the order in December last, which led Amazon to file an appeal before the NCLAT. It also approached the Supreme Court by way of a Special Leave Petition (SPL).

Amazon argued before the tribunal that Amazon and Future Group adopted a twin-entity investment structure according to the existing Indian Foreign Direct Investment (FDI) laws. According to the share-subscription agreement, Amazon would invest Rs.1,431 crore in FCPL, which would directly be transmitted to Future Retail.

Amazon stressed that all such information and the agreement were disclosed to the CCI. Appearing for Amazon, senior advocate Gopal Subramaniam argued that as per the terms of the agreement, Future Retail could not alienate its assets or deal with certain restricted parties such as Reliance Industries.

Thus, by announcing its asset sale deal to a wholly-owned subsidiary of Reliance Industries and Reliance Retail, Future Retail had breached its contractual obligations, being a related party to FCPL.

The bench directed CCI and FCPL to file their replies within the next 10 days and asked Amazon to file a rejoinder before the next date of the hearing. The tribunal also instructed both the parties to file a 'Convenience Compilation' and notes of the submissions.

The CCI urged the tribunal not to pass any order granting interim relief stating that it was ready to argue the matter whenever asked.

The next date of hearing in the matter is 2 February, a day before Amazon is required to pay its penalty of Rs.202 crores imposed by the CCI vide its December order.