Future Group shares in heavy demand; jump up to 20 pc

Shares of Future Group companies on Monday zoomed up to 20 percent after the Competition Commission suspended its more than two-year-old approval for Amazon's deal with Future Coupons and imposed a Rs 202-crore penalty on the e-commerce major.

Future Lifestyle Fashions jumped 20 percent, Future Supply Chain Solutions 19.99 percent, Future Retail Ltd 19.92 percent, Future Enterprises 19.93 percent, and Future Consumer zoomed 19.91 percent on the BSE.

All these companies hit their upper circuit limits.

In a significant development, the Competition Commission on Friday suspended its more than two-year-old approval for Amazon's deal with Future Coupons and imposed a Rs 202 crore penalty on the e-commerce major for failure to furnish true and complete details about the transaction.

The ruling by CCI assumes significance amid the long-drawn bitter legal battle between Amazon and Future Group over the Indian entity's proposed Rs 24,713 crore-deal with Reliance Retail Ventures Ltd (RRVL).

Deals beyond a certain threshold require a CCI nod and it is quite rare for the watchdog to suspend an approval.

In a 57-page order, the regulator noted that the contraventions of the competition law have arisen ''from a deliberate design on the part of Amazon to suppress the actual scope and purpose of the combination''.

Consequently, fines totaling Rs 2 crore have been imposed on Amazon.

For failure to notify the combination in the requisite terms, the watchdog has also slapped a penalty of Rs 200 crore.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)