CCI gives nod to Future-Reliance deal, setback for Amazon (Ld)

New Delhi, Nov 20 : Despite Amazon’s objections, the Competition Commission of India (CCI) has cleared the Future-Reliance deal.
Announcing the decision on Twitter on Friday, CCI said, “Commission approves acquisition of retail, wholesale, logistics & warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited.” The Jeff Bezos-led Amazon had claimed before the CCI that the so called “injunction” of the Emergency Arbitrator was binding on CCI and that CCI should stop processing the application and should not give its approval. But CCI has now gone ahead and approved the deal.
Sources said that none one other than a writ court in India can bind the CCI and “injunct” it. No regulator can be bound by the so called “injunction” of the arbitrator, they pointed out.
It has been pointed out that Future Retail Limited (FRL) is a listed company and Section 230-234 of the Companies Act is a code in itself.
A company and its shareholders/creditors have unrestricted right to enter into a scheme of arrangement. The only requirement is that the scheme has to be passed with requisite majority.