Amazon has filed an appeal against the Competition Commission of India’s suspension of its deal with Future Group at the National Company Law Appellate Tribunal (NCLAT).
The US ecommerce retailer also filed a special leave petition (SLP) in the Supreme Court against the Delhi court decision that stayed proceedings in an ongoing Singapore arbitration case between Amazon and Future Group until February, 1 citing CCI’s recent order.
Last month, the competition regulator suspended its earlier approval of Amazon’s investment in Future Coupons Pvt Ltd (FCPL), a Kishore Biyani promoted firm. CCI said Amazon hadn’t fully disclosed its interest in Future Retailwhen it sought clearance for the ₹1,431-crore investment in FCPL.
Amazon did not respond to an email seeking comment.
Amazon, in its latest appeal, claimed that CCI does not have authority to unwind approval after 12 months and in case of any aberration, it attracts a maximum penalty of ₹5 crore. However, CCI ordered a penalty of ₹202 crore.
Amazon also appealed that abeyance or revoking was not a viable punishment given that CCI clearly stated requisite information was given by Amazon, but its interest in FRL should have been emphatically pointed, said a person aware of the development.
Legal experts disagree.
“Any decision of CCI which has been taken by suppressing material facts can be revoked,” said Ashish K Singh, managing partner of law firm Capstone Legal. “Given the important legal questions involved in these transactions, an appeal to the SC is most likely to be entertained as it raises a substantial question of law. NCLT is the final appellate authority after the dissolution of the Competition Appellate Tribunal for challenging the decision of CCI.”
