According to reliable sources, India’s Supreme Court restrained the NCLT (National Company Law Tribunal) from sanctioning a deal worth USD 3.4 billion between Mumbai-based multinational conglomerate Reliance Industries Limited (RIL) and Future Retail Limited.

For the record, Future Retail is an Indian retail company that primarily focuses on the commercialization and sale of a wide range of consumer and household products through various formats of departmental stores. The organization has access to approximately 210 supermarkets and 20 compact hypermarkets across the country.

This decision revoking the deal between Future Retail and Reliance comes along the heels of e-commerce giant Amazon.com, Inc. making a plea against the Delhi High Court to maintain the status quo on the deal between the two retail organizations. The company alleged that the deal breached the terms of a contract that prohibited Future from selling its retail assets without the consent of Amazon.

 Speaking in favor of the collaboration with Reliance, Future Retail argued that the contract was signed by its subsidiary-Future Coupons, and not the entire group, confirmed sources.

It is to be noted that the merger with Reliance, proposed by Future Retail, was approved by the Competition Commission of India. Reportedly, the Securities and Exchange Board of India (SEBI) issued a no-objection certificate, following which the firm approached the bench of the NCLT.

If sources are to be believed, the bench, comprising Justices B R Gavai and R F Nariman issued the notices to Kishore Biyani, Chairman of Future Retail. The proceedings before the NCLT will go on, however, the court will not approve the collaboration of the two organizations.

Sources knowledgeable of the matter cited that the reply to Amazon’s appeal will be filed by the bench in three weeks and will be listed for hearing after five weeks.

Source Credits –

https://www.wionews.com/india-news/supreme-court-issues-notice-to-future-retail-others-on-amazons-plea-365370