Amazon moves Supreme Court against NCLAT order in Future Group case
Amazon moves Supreme Court against NCLAT order in Future Group case
The online shopping platform was fined Rs.200 crores under the Competition Act
Amazon has moved the Supreme Court against the order of the National Company Law Appellate Tribunal (NCLAT). In 2019, the tribunal upheld the Competition Commission of India (CCI) order suspending Amazon's investment in the Future Group.
The CCI order, upheld by NCLAT in December last, had declined to give a nod to Amazon for a 49 percent stake in Future Coupons Private Limited (FCPL), the promoter of Future Retail.
Amazon was ordered to pay a fine of Rs.200 crores for non-disclosure of information on combinations under the Competition Act, 2002.
The CCI had submitted before the tribunal that Amazon was required to clarify the 'economic' and 'strategic purpose' of the proposed investment. It maintained, that the company had misrepresented the scope and purpose of the proposed combination.
On the other hand, Amazon argued that it had submitted all documents regarding the investment before the CCI.
But NCLAT ruled that the online shopping platform had not made a full disclosure about its strategic interest in Future Retail.
Meanwhile, representing Amazon, Kirti Dua, a partner at ANG Partners, Advocates and Solicitors said that the company wanted foreign investor rules in India to be eased to attract foreign investments.
Speaking on behalf of Amazon, she stated that the company had cleared that it would not take over the Future Group completely but issue cards for its corporate customers.
However, CCI stressed that the actual reason for the investment was not disclosed, which was to develop supremacy in the market.
