Shares of Future Group companies including Future Retail, Future Lifestyle Fashions, Future Enterprises and Future Supply Chain Solutions hit 10 percent lower circuit after the Supreme Court ruled in favour of Amazon in dispute with the group saying that the emergency award was enforceable in Indian law.

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The stock price of Reliance Industries also declined by over two percent.

The verdict comes nearly a year after Reliance Retail announced the acquisition of Future Group's retail, wholesale and logistics and warehousing business by way of a slump sale for Rs 24,713 crore in August 2020.

Amazon had objected to the deal in multiple courts.

India’s apex court on August 6 ruled that the Emergency Arbitrator, i.e. the Singapore International Arbitration Centre’s (SIAC) award that stayed the deal between Mukesh Ambani’s Reliance Retail and Kishore Biyani-led Future Group, holds good under section 17(1) of the Arbitration and Conciliation Act.

SIAC in October 2020 had barred the deal from proceeding and had also constituted a three-member panel to pass a final verdict. This verdict is still awaited.

“We welcome the verdict of the Hon’ble Supreme Court of India upholding the Emergency Arbitrator’s award. We hope that this will hasten a resolution of this dispute with Future Group," Amazon spokesperson said in a statement.

#CNBCTV18Market | Future group stocks take a sharp knock following SC's observation in the Amazon-Future case pic.twitter.com/KRu8ckBlM0

— CNBC-TV18 (@CNBCTV18Live) August 6, 2021

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(Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

First Published:Aug 6, 2021 12:23 PM IST