According to the Delhi High Court order, three agreements came to be executed between FRL, FCL and Amazon. A Share Holders Agreement was signed between FRL and FCL on August 12, 2019. On August 22, 2019, another Share Holders Agreement was signed between FCL and Amazon. A Share Subscription Agreement was also signed between Amazon and FCL on the same date.
While the FCL-FRL deal meant that FRL could not dispose its retails assets to third parties, the deals between FCL and Amazon envisaged that the American company would invest ₹1,431 crore to acquire 49% equity in FCL. The agreement also required Amazon to obtain prior approval from Competition Commission of India (CCI) before investment.
Amazon applied for the said approval before CCI on September 23, 2019 and a conditional approval was granted on November 28, 2019.
On August 29, 2020, FCL allowed FRL to enter into a Scheme of Arrangement (SOA) with Reliance through a board resolution. Under the agreement, the retail assets of FRL and its group companies were to be sold to Reliance for around ₹25,000 crores apart from an additional investment of ₹2,400 crores.
Source: Barandbench
