Companies

Future Retail moves application in NCLT for demerger of Group assets

Forum Gandhi Mumbai | Updated on January 28, 2021

The move is seen as a step towards firming up scheme agreement with Reliance Industries

Future Retail has moved an application in the NCLT for demerger of the assets of the Future Group. This is a step towards firming up the scheme agreement with Reliance Industries Ltd.

This comes even as Amazon has moved a fresh petition in the Delhi High Court to implement the interim stay passed by the Singapore International Arbitration Centre (SIAC) on the said deal. It has prayed for a restraining injunction against the Future Retail and Reliance Industries Ltd deal, and sought damages.

Not only that, Amazon has asked for civil detention in prison for the directors, and promoters of the Future Group. Along with that, Amazon has also appealed for attachment of assets of the Kishore Biyani-owned Future Group.

The appeal is yet to be admitted by the Divisional Bench of Delhi High Court.

On January 20, the Security Exchanges Board of India (SEBI) gave a conditional nod to the Rs 25,000-crore deal between Future Retail and Reliance.

In its letter to the Exchanges, SEBI said: “In light of the above, we hereby advise that we have no adverse observations with limited reference to those matters having a bearing on listing/ delisting/ continuous listing requirements within the provisions of Listing Agreement, so as to enable the company to file the scheme with NCLT,” it said.

Amazon, which had invested Rs 1,400 crore in FCPL, a gifting arm of the Kishore Biyani-owned Future Group in 2019, had moved an arbitration in SIAC.

Post this, Amazon had been writing letters to the Indian authorities seeking their attention and requesting them to not approve the deal. FRL had then moved a petition in the Delhi High Court seeking an injunction against Amazon on the same, which was later rejected.

In December last year, Justice Mukta Gupta had observed that FRL had made a prima facie case in the petition it had filed. However, she hadn’t prohibited Amazon from writing letters to the statutory authorities. However, according to Amazon, it did not receive the remedies it was hoping to get from the courts on the same.

Future Retail-RIL deal: Amazon requests SEBI not to issue no-objection certificate

Future Retail row: Amazon files appeal in Delhi HC

 

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Published on January 28, 2021
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