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The Mumbai Bench of NCLT has given Future Retail Ltd (FRL) the approval to hold a meeting with its shareholders to seek approvals on the ₹24,713-crore deal with Reliance Industries Limited.
On the other hand, the two-Bench, including Suchitra Kanuparthi and Chandra Bhan Singh, dismissed the application filed by e-commerce major Amazon opposing the scheme of merger of the Future group companies.
In February this year, FRL had sought the NCLT’s approvals. The approval to hold a shareholder meeting is the first step. Future Retail needs a host of other approvals.
The scheme of arrangement between Future and Reliance Retail entails the consolidation of Future Group’s retail, wholesale, logistics and warehousing assets into one entity – Future Enterprises Ltd – and then transferring it to Reliance Retail.
In August last year, Reliance Retail Ventures Ltd (RRVL) had said it will acquire the retail and wholesale business, and the logistics and warehousing business of Future Group. However, Amazon, which is an investor in Future Coupon in 2019 had opposed the deal.
In October last year, Amazon dragged Future Retail into arbitration at the Singapore International Arbitration Centre (SIAC). In SIAC, it was awarded an interim stay against the Future Retail and Reliance Industries deal. Later, it moved the Indian courts to implement the said order.
To be heard by apex court
Besides this, it also filed in Indian courts, including the Supreme Court, on the issue. The Supreme Court had passed an order upholding the SIAC order.
It also directed the attachment of Future Retail’s directors’ assets. However, Future Retail appealed against the same. The matter will soon be heard by the apex court.
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