|
The Supreme Court on Wednesday set aside the two-hundred and two crores (202 crores) penalty imposed on e-commerce giant Amazon by the Commission of India's (CCI) over its 2019 investment deal with Future Coupons Pvt. Ltd.
The order was passed by a bench of Justices Vikram Nath and Sandeep Mehta. The Court also granted relief to the e-commerce giant by directing authorities to refund any amount deposited by Amazon within eight weeks, along with 6% annual interest. It further said that if the refund is delayed beyond the prescribed period, the interest rate would increase from 6% to 9% per annum. The apex court clarified that any unpaid amount after the eight-week deadline would continue to carry 9% simple annual interest until the payment is made. The dispute arose from Amazon's 1,431 crore acquisition of a 49% stake in Future Coupons in 2019. Future Coupons, in turn, held shares in Future Retail. In December 2021, the CCI suspended its earlier approval of the transaction. The regulator alleged that Amazon had failed to disclose that the Future Coupons deal and related agreements were part of a single integrated transaction. CCI also accused Amazon of making inconsistent representations before Indian regulators and the Singapore arbitration tribunal regarding the purpose and structure of the transaction. The regulator imposed a 200 crore penalty for allegedly failing to properly notify the combination and an additional 2 crore penalty for suppressing material facts. It had also kept Amazon's stake in Future Coupons in abeyance. Amazon challenged the order before the National Company Law Tribunal (NCLT), which upheld the CCI's decision in 2022. In 2023, the Supreme Court granted interim relief to Amazon and stayed the penalty imposed by the regulator. (ANI)
|
