Future Group case: Amazon moves SC to challenge NCLAT order
The NCLAT upheld the decision of CCI to suspend its approval of Amazon’s investment into Future Group
Ecommerce major has moved Supreme Court against an order of the NCLAT, which upheld fair trade regulator CCI's decision to suspend its approval for investment in a Future Group company.
The National Company Law Appellate Tribunal (NCLAT) on June 13 rejected Amazon's plea challenging the decision of the Competition Commission of India (CCI) to suspend the approval for the ecommerce major's deal with Future Coupons and directed the company to pay the over Rs 200 crore penalty imposed on it, within the next 45 days.
The said order has now been challenged by Amazon before the apex court. In its petition, a copy of which has been seen by PTI, the ecommerce major has said the NCLAT order has several glaring defects and suffers from a total non-application of mind by the appellate tribunal.
The matter is expected to be listed next week before the apex court. In December last year, the CCI suspended the approval given by it in 2019 for Amazon's deal to acquire a 49% stake in Future Coupons Pvt Ltd (FCPL).
The regulator had said that Amazon suppressed information while seeking clearances for the transaction back then and also slapped a fine of Rs 202 crore on the company.
This includes a Rs 200 crore penalty for Amazon to notify the combination in the requisite terms and two penalties of Rs 1 crore each for suppressing the actual scope and purpose of the combination.
The CCI order was challenged by Amazon before the NCLAT, an appellate authority over the fair trade regulator, which in turn upheld the findings.