Future Group Says Will Sink if Reliance Deal Fails, SC Reserves Verdict in Case against Amazon
IANS 12 January 2022
The Future group on Tuesday submitted before the Supreme Court (SC) that Future Retail Ltd will sink with its 30,000 employees, if its over Rs24,000-crore deal with Reliance Retail fails to reach fruition.
The Future group also sought permission from a bench, headed by Chief Justice NV Ramana to proceed with the deal to sell its retail assets to Reliance Retail.
Senior advocate Harish Salve, representing Future Retail, submitted that company is in a precious financial situation due to the COVID pandemic and if its deal with Reliance Retail is obstructed, then 30,000 employees may lose their jobs. He added that his client should be allowed to secure shareholder approval and seek nod from the CCI (competition commission of India) and the NCLT (national company law tribunal).
"Let us get to that final stage... Amazon's interests aren't hurt," he argued.
Senior advocate Gopal Subramanium, representing Amazon, submitted that his client has been offering to help the Future group.
Senior advocate Mukul Rohatgi, appearing for Future Coupons, submitted the assets of the promoters of the Future group are hypothecated, and if the deal with Reliance fails to go through, then everybody will sink, pointing at thousands of employees.
Citing Indian laws, Mr Salve said Amazon cannot give money to his client, as the law does not permit them to invest in multi-brand retail.
After a detailed hearing in the matter, the bench, also comprising justices AS Bopanna and Hima Kohli reserved the judgment in the matter.
The Future Coupons and Future Retail have moved the top court challenging the Delhi High Court's single bench March 2021 order, directing attachment of assets of Future group companies and its promoters for breach of Emergency Award by Singapore Tribunal. Both sides have so far filed several cases at various forums, which include the apex court, Delhi High Court, and the Singapore International Arbitration Centre (SIAC).
In 2020, Amazon invoked arbitration after Future Retail announced its asset sale deal with Reliance Industries Ltd's wholly-owned subsidiary, Reliance Retail.
In December last year, the CCI had imposed a penalty of Rs202 crore on Amazon and suspended its approval for the e-tailer's deal with Future Coupons, a promoter firm of the group's public listed company Future Retail Ltd, seeking more information. The US e-commerce giant has challenged the CCI order at the National Company Law Appellate Tribunal (NCLAT).
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7 months ago
The deal and sale to Reliance has been full of rigmaroles,sea sawing for . > re than a year now with no,light at the end of the tunnel. it's Amazing - Amazon has so much time/money to prolong the deal and say they want to help Employees. Crocodile Tears.
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