Amazon’s objections is no longer relevant for approval of Scheme by SEBI is the takeaway from the Delhi High Court order today.
FRL Board Resolution approving Scheme and sale of business to Reliance is Valid and in accordance with statutory provisions — not void as claimed by Amazon.
Amazon has violated FEMA and FDI Rules. The Shareholders agreements read together show Amazon has acquired “control” rights over FRL. In the absence of Government approvals this is contrary to FEMA and FDI Rules.
Amazon has committed Civil Wrong against FRL and Reliance which is actionable by both FRL and Reliance in case they suffer loss.
The Statutory authorities — SEBI are directed to take the decision on the applications/ objections in accordance with law.
In view of the above order, SEBI has to approve the Scheme submitted by FRL so long as the scheme is in compliance with statutory provisions of companies act and other SEBI regulations. Amazon’s objections is no longer relevant for approval of Scheme by SEBI.