Jeff Bezos-Mukesh Ambani spat tests India’s allure for foreign investors

Agencies
February 9, 2021

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The tussle between two of the world’s richest men -- Jeff Bezos and Mukesh Ambani -- to dominate India’s estimated $1 trillion retail market is testing foreign investor patience with flip-flopping court rulings.

This week saw new developments in Amazon.com Inc.’s legal battle to block Ambani’s Reliance Industries Ltd. from acquiring Future Retail Ltd.’s assets, in what would be the country’s largest retail-sector deal. Last week, a single judge at a high court in New Delhi restrained Future Group firms from selling their assets. On Monday, a set of judges at the court overruled that decision. Amazon can appeal the latest ruling in the country’s Supreme Court.

The keenly watched case may set an important legal precedent for investors on whether emergency decisions by foreign arbitrators are valid in India. Amazon had petitioned Indian courts with an order from an emergency arbitration court in Singapore that barred Future Retail from making a deal with Reliance.

It could also help overseas investors judge the validity of agreements in India, which the World Bank has ranked among the bottom 15% of countries in terms of enforcing contracts, worse than Venezuela, Syria and Senegal.

“Not giving effect to a foreign arbitration award undermines India’s already floundering reputation as a good place to invest and do business in,” said Bharat Chugh, a former civil judge in Delhi and now a lawyer practicing in India’s top court. Speedy enforcement of contracts and foreign arbitration rulings are important for overseas investors when assessing the attractiveness of an investment destination, he said.

Spokespeople at Reliance Industries, Amazon’s local unit and Future Group weren’t able to comment immediately on the latest ruling. Future Retail’s lawyers have argued in court that the deal is their only chance to avoid bankruptcy and save jobs.

The rulings in Amazon’s case come after two big foreign arbitration awards against India. In September, an international arbitration tribunal said India acted unfairly in a $3 billion tax dispute with Vodafone Group Plc and in another ruling ordered India to return $1.2 billion to Cairn Energy Plc for a similar failure. India has challenged the Vodafone ruling in Singapore, India’s federal government informed Parliament on Monday.

It’s common for companies investing in India to opt for foreign arbitrations as the judicial process in the country can take years. After an overseas arbitrator makes a decision, companies can seek its enforcement via an Indian court if the opposing side doesn’t comply.

Singapore Order

In the Amazon-Future Retail case, in October a Singapore emergency arbitration tribunal ordered the Future Group to halt the sale to Reliance. Amazon cited a partnership agreement with a Future Group firm for a customer loyalty promotion that restricted the group from selling assets to Mukesh Ambani’s company and allowed arbitration in Singapore to settle disputes.

Future Retail has argued in court that the pact with another group firm doesn’t bind it and the Singapore’s emergency arbitration order wasn’t enforceable in India. That prompted Amazon to petition the Delhi High Court to ensure compliance.

Last week, a high court judge halted the deal and said he was of the initial view that the order from the emergency arbitration court in Singapore is valid and can be enforced in India. On an appeal by Future, a two-judge panel allowed the deal, saying Future Retail wasn’t a party to the agreement between Amazon and Future Coupons Pvt. A detailed hearing of the case will be held from Feb. 26, the judges said on Monday.

“Last week’s order would have been some solace to foreign investors worried about the arbitration enforcement regime in India, but the order passed on Monday against Amazon would raise fresh concerns,” said Samudra Sarangi, a partner at law firm Panag & Babu. “An appeal before the Supreme Court may be inevitable.”

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coastaldigest.com news network
June 26,2024

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Mangaluru: Four members of a family died when the compound wall of a house collapsed on a neighbouring house at Kuthar Madani Nagara in Ullal police station limits on Wednesday morning.

The deceased have been as Yasir (45), his wife Mariamma (40) and their two daughters Raihana (19) and Rifaana (16) passed away in the incident. The compound wall belongs to Aboobakkar.

A large number of people gathered at the spot while bodies are being recovered from the debris.

The wall of the house collapsed in the bedroom where Yasir and his family were sleeping. Following the rain, a compound wall and two areca nut trees have fallen on Yasir's house.

Yasir was a worker in the fisheries harbour at Bunder, while his children - Rihana and Rifan - were students.

Yasir had purchased the house six years ago and had given the house for lease. He had shifted to the house only six months ago. In fact, a compound wall had collapsed on the house two years ago too, but no casualties were reported.

After a three-hour operation, all the four bodies were recovered from the debris with the help of local residents and personnel from fire and emergency services.

Yasir’s eldest daughter Rasheena is married and had returned to her husband’s house in Kerala on Tuesday, after celebrating Bakrid.

Meanwhile, Dakshina Kannada has been experiencing bountiful showers since Tuesday night.

The India Meteorological Department (IMD) has issued an orange alert in the district till June 27. According to the forecast, a wet spell is likely to continue over Coastal Karnataka and adjoining parts of Malnad and interior Karnataka districts with widespread light to moderate rains.

Heavy to very heavy rains may also occur at isolated areas until June 27.

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News Network
June 29,2024

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New Delhi: The Janata Dal United (JDU) concluded its national executive meeting with a resolution demanding special state status for Bihar. The party, led by Chief Minister Nitish Kumar, emphasized the longstanding need for Bihar to be granted special status, highlighting economic and developmental disparities.

Addressing the media after the meeting, a senior JDU leader stated, "The demand for special state status for Bihar is not new. It is a crucial step towards accelerating Bihar's growth trajectory and addressing the state's unique challenges."

The resolution also underscored the necessity of safeguarding Bihar's reservation quota, which was recently increased to 65 percent. The JDU proposed that this quota be included in the Ninth Schedule of the Constitution to shield it from judicial scrutiny, ensuring its uninterrupted implementation.

Regarding recent controversies, the party expressed deep concern over alleged irregularities in the NEET examination and called for a thorough investigation. "It is imperative to restore the credibility of such crucial examinations and uphold the trust of students and parents in the fairness of the process," the leader added.

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News Network
June 28,2024

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The Karnataka Criminal Investigation Department (CID), which filed a chargesheet against former CM and BJP veteran BS Yediyurappa and three others, has claimed that Yediyurappa not just sexually assaulted minor at his house but also tried to cover it up by giving cash. 

In the chargesheet, three of Yediyurappa’s aides have been charged for destruction of evidence and trying to cover up the case on his behalf. 

The charges have been filed under IPC Sections 354A (sexual harassment), 204 (destruction of document or electronic record to prevent its production as evidence), 214 (offering gift or restoration of property in consideration of screening offender) and Section 8 (sexual assault) of the POCSO Act.

Bengaluru Police had registered an FIR against the 81-year-old BJP leader on March 15 under the law based on a complaint from a woman who accused him of sexually assaulting her 17-year-old daughter. The girl had allegedly gone to meet the leader along with her mother at his home in February this year, seeking his help to speed up a probe into a past rape case. Her mother, who had made the complaint against Yediyurappa, died of lung cancer last month.

The government later transferred the case to the CID. A Bengaluru court had issued a non-bailable warrant for the leader’s arrest earlier this month, but the Karnataka High Court halted his arrest.

With the case back in the news last month, the BJP had sharply retaliated at the renewed interest, insinuating that the Congress government was doing this to divert attention from its loss in the recent general elections in the state. Yediyurappa had denied the charges, saying “people would teach a lesson to those indulging in conspiracies against me.”

750-page chargesheet

The 750-page chargesheet filed by the CID explains the minor girl’s ordeal.  The investigators found that on February 2, 2024, at around 11.15 am, the survivor, along with her 54-year-old mother, the complainant who died on May 26, visited Yediyurappa, 81, at his residence in Dollar’s Colony, Bengaluru seeking help in a previous case of sexual assault and other matters. While Yediyurappa was speaking with the mother, he was holding the survivor’s right wrist with his left hand.

Yediyurappa then called the minor inside a meeting room next to the hall and locked the door. He then asked the survivor, if she remembered the face of the person who had sexually assaulted her earlier. After the survivor replied twice that she did, Yediyurappa asked her what her age was then and proceeded to sexually assault her, the investigations found.

The survivor, startled, pushed the former CM’s hand, moved away and asked him to open the door. Yediyurappa put some cash in the hand of the survivor from his pocket and exited the room. He told the survivor’s mother that he couldn’t help them, gave her some money from his pocket and sent them away, the investigations revealed.

On February 20, after the survivor’s mother uploaded a video related to the crime on her Facebook account. Arun Y M, accused No.2, at the behest of Yediyurappa, along with Rudresh M and G Mariswamy, accused No.3 and 4, initiated contact with the survivor and her mother.

Rudresh and Mariswamy, along with another person listed as the witness, went to the survivor’s house and ferried her and her mother to Yediyurappa’s residence in their car. Investigations found that the three accused then coerced the survivor’s mother into taking down the video from her Facebook account and deleted the video from her iPhone’s gallery.

At Yediyurappa’s directions, Rudresh paid the survivor Rs 2 lakh in cash, the investigations revealed. Another conversation recorded by the survivor in her phone, which was not deleted, and the voice samples of Yediyurappa, formed key pieces of the evidence, reported Deccan Herald quoting sources.

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