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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News Network
September 25,2024

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Israel began a third day of strikes in southern Lebanon on Wednesday, hours after Hezbollah confirmed the death of a senior commander in an airstrike on Beirut and a Lebanese minister said only Washington could help end the fighting.

Lebanese media reported that Israeli airstrikes had targeted several areas in the country’s south, beginning at around 5am, causing unspecified casualties.

Hezbollah meanwhile said it had launched a rocket targeting Mossad headquarters near Tel Aviv. Sirens had sounded in the Israeli city early on Wednesday, sending residents into bomb shelters, however the Israeli military later said it had intercepted the missile and no casualties or damage were reported.

Earlier on Wednesday, Hezbollah had confirmed that senior commander Ibrahim Qubaisi was among six people killed by an Israeli airstrike on an apartment block in the Lebanese capital Beirut on Tuesday, as Israel had claimed earlier. Israel said Qubaisi headed the group’s missile and rocket force.

Israel’s offensive since Monday morning has killed 569 people, including 50 children, and wounded 1,835 in Lebanon, health minister Firass Abiad told Al Jazeera Mubasher TV. Tuesday’s attacks came after Monday’s barrages racked up the highest death toll in any single day in Lebanon since the 15-year civil war that started in 1975.

Israel’s new offensive against Hezbollah has stoked fears that nearly a year of conflict between Israel and the militant Palestinian group Hamas in Gaza is escalating and could destabilise the Middle East. Britain urged its nationals to leave Lebanon and said it was moving 700 troops to Cyprus to help its citizens evacuate.

The UN security council said it would meet on Wednesday to discuss the conflict.

“Lebanon is at the brink. The people of Lebanon – the people of Israel – and the people of the world – cannot afford Lebanon to become another Gaza,” UN secretary general António Guterres said.

At the UN, which is holding its general assembly this week, US President Joe Biden made a plea for calm. “Full-scale war is not in anyone’s interest. Even if a situation has escalated, a diplomatic solution is still possible,” he said.

Lebanon’s foreign minister Abdallah Bou Habib criticised Biden’s address as “not strong, not promising” and said the US was the only country “that can really make a difference in the Middle East and with regard to Lebanon.” Washington is Israel’s longtime ally and biggest arms supplier.

The US “is the key … to our salvation,” he told an event in New York City hosted by the Carnegie Endowment for International Peace.

Up to half a million people are estimated to have been displaced in Lebanon, said Bou Habib. He said Lebanon’s prime minister hoped to meet with US officials over the next two days.

In Lebanon, displaced families slept in shelters hastily set up in schools in Beirut and the coastal city of Sidon. With hotels quickly booked to capacity or rooms priced beyond the means of many families, those who did not find shelter slept in their cars, in parks or along the seaside.

Fatima Chehab, who came with her three daughters from the area of Nabatieh, said her family had been displaced twice in quick succession.

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News Network
October 3,2024

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In a relief to Sadhguru, the Supreme Court on Thursday stayed the police action against Isha Foundation and transferred the matter from the Madras High Court to the top court, PTI reported.

Sadhguru's Isha Foundation today moved the Supreme Court against a Madras High Court order to submit details of all criminal cases against it, ANI reported.

Isha Foundation sought a stay on Madras High Court order, told Supreme Court that 500 policemen raided it, probing every corner, PTI reported.

Senior advocate Mukul Rohatgi appearing for Isha Foundation sought an urgent hearing today.

A bench of CJI DY Chandrachud said that you can't let Police or Army enter a place like this, the agency reported.

One of the women appeared online and said she was staying at the Isha Yoga Centre willingly. The woman told the Supreme Court that both of the sisters are at the Ashram out of their own will and this harassment from their father's side has been continuing for the last eight years.

The top court said it would interact with the two women online in their chambers right away.

Tamil Nadu Police on Tuesday launched an inquiry against Isha Foundation run by yoga guru Jaggi Vasudev over several allegations, a day after the Madras High Court sought a status report on all criminal cases registered against the organisation.

A multi-departmental team led by K Karthikeyan, Coimbatore Rural District Superintendent of Police, and consisting of officials from the Social Welfare Department and the District Child Protection Committee launched the inquiry at the sprawling premises of Isha Foundation in Thondamuthur.

 “We have launched an inquiry based on the court order,” a senior police official told DH from Coimbatore. The police team sought details of cases registered against the foundation in the past and inquired with several inmates about their condition in the ashram.

The inquiry came a day after the court ordered the police to conduct an enquiry and file a report on a habeas corpus petition filed by retired professor S Kamaraj, who alleged that his two daughters were being held captive at the ashram.

When contacted, a spokesperson for Isha Foundation admitted that a team led by the district SP was conducting an inquiry at the premises and that there were no searches. “They are enquiring with residents and volunteers, understanding the lifestyle, understanding how they come in and stay etc,” the spokesperson said.

The foundation also said the two women have clearly stated that they are staying in Isha Yoga Centre out of their own volition. “Now that the matter is seized by the court, we hope truth will prevail and there is an end to all the unnecessary controversies created,” the foundation said.

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News Network
October 3,2024

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Karnataka Health Minister Dinesh Gundu Rao reminded that V D Savarkar was not against cow slaughter as he himself was non-veg eater, PTI reported on Thursday.

"As a Brahmin he was eating meat, and he was openly propagating eating meat," said the minister at an event in Bengaluru.

Reacting to Gundu Rao's claim, BJP MP Anurag Thakur called Congress a "factory of lies" as he warned that India won't tolerate any disrespect towards Savarkar.

"By disrespecting Veer Savarkar they have shown that they don't respect freedom fighters. During the Congress government, Sardar Bhagat Singh was termed a separatist in textbooks...By making those who want to break the nation join the congress party, Rahul Gandhi is taking forward the ideology of 'tukde tukde' and he is a 'modern Jinnah' who speaks ill of the country abroad...," he said.

Meanwhile, a court in Maharashtra's Nashik district summoned Congress MP Rahul Gandhi earlier this week in a defamation case filed against him for his alleged objectionable remarks against the Hindutva ideologue.

The complainant, who is the director of an NGO, claimed he watched a press conference addressed by Gandhi in Hingoli and also a speech made by the Congress leader in November 2022.

He alleged that Gandhi, on the two occasions, by his words and visual representations knowingly harmed the reputation of Veer Savarkar and also tried to defame the latter's image in the society.

According to the complainant, Gandhi said "Savarkar is BJP and RSS jin" which was defamatory in nature.

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