In a blow to Amazon, the NCLAT has upheld the Competition Commission of India’s (CCI) order suspending the deal between the global e-commerce giant and Future Coupons.
A two-member bench comprising Justice M Venugopal and Ashok Kumar Mishra ordered Amazon to pay the penalty of Rs 200 crore within 45 days. The appellate tribunal backed the CCI findings that Amazon didn’t make full disclosures.
The fair trade regulator CCI had suspended the over two-year-old approval for its deal with Future Coupons Pvt Ltd (FCPL).
In December, the CCI had suspended the Amazon-FCPL deal saying that the US e-commerce major had suppressed information while seeking clearances for the transaction back then.
Amazon had opposed FRL’s deal to sell assets to Reliance Retail as part of a Rs 24,713-crore deal, which has now been called off.
The deal was opposed by the e-commerce major on the basis of its 2019 transaction, whereby it had acquired the 49 per cent stake in FCPL.
NCLAT concluded its hearing in April this year, over Amazon’s plea. All parties had filed revised notes of submissions along with relevant citations before the registry.
On Monday, apart from Amazon’s plea, the appellate tribunal had also reserved the order on two other petitions in the matter filed by the Confederation of All India Traders (CAIT) and All India Consumer Products Distributors Federation (AICPDF).
FRL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713 crore deal announced in August 2020.
The deal was called off by the billionaire Mukesh Ambani-led Reliance Industries Ltd in April.
Source: Economic Times