Companies

SC stays Future Retail-Reliance deal; issues notice to companies

Our Bureau. Mumbai | Updated on February 22, 2021

While the NCLT can proceed with the hearings, it cannot sanction the merger, the apex court said.   -  Shanker Chakravarty

The Supreme Court has granted an interim stay on the Future Retail-Reliance deal. The top court has issued notices to Kishore Biyani-led Future Group and Mukesh Ambani-led Reliance Group. The Court has also said that while the NCLT can proceed with the hearings, it cannot sanction the merger.

A two-judge Bench of Justice Rohinton F Nariman and Justice BR Gavai heard the arguments earlier this month by the counsels of Amazon and Future Group as the former sought an interim stay on the ₹24,731 crore asset sale between Future Retail and Reliance.

No final sanction

In the meantime, the NCLT proceedings will be allowed to go on, the Supreme Court said “but will not culminate in any final order of sanction of the scheme.”

In a statement, Future Retail clarified that “The Hon’ble Supreme Court has further specifically ruled that the proceedings before NCLT will be allowed to go on but will not culminate in any final order of sanction of the scheme. Accordingly, the NCLT can now issue directions to convene the meetings of shareholders and creditors of the applicant companies including FRL to consider the Scheme.”

Published on February 22, 2021

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