Approach Delhi HC to resume Reliance deal: SC directs Future Group
Premium- On Tuesday, the Future Group told the Court that the NCLT approval requires multiple steps, which will take few months and therefore it should allow the process to continue
Mumbai: The Supreme Court on Tuesday allowed Future Retail Ltd (FRL) to move the Delhi High Court for seeking approval to resume National Company Law Tribunal (NCLT) proceeding for its ₹24,731 crore merger deal with Reliance Group.
In February 2021, SC had prevented the NCLT from taking a final call on the deal between Kishore Biyani-led Future Retail Ltd and Reliance Retail, even as it allowed the tribunal to go ahead with the proceedings for merger of Future group and Reliance group firms.
On Tuesday, the Future Group told the Court that the NCLT approval requires multiple steps, which will take few months and therefore it should allow the process to continue.
A bench led by Justice NV Ramana said, “liberty granted to Future Group to seek continuation of NCLT proceedings before the high court. The HC can grant appropriate orders uninfluenced by any observations of the Supreme Court."
The apex court’s decision to overturn the HC’s 8 February ruling that lifted a freeze on the deal and allowing the NCLT to grant its approval based on merits was a positive for Amazon, which is keen to scuttle the deal.
Amazon had secured an interim stay on the deal from a Singapore arbitration tribunal in October, over alleged violation of a partnership contract by Future Group when it agreed to sell the assets to Reliance.
The ongoing legal tussle between Amazon and Future Group is over the sale of Future’s retail assets to Mukesh Ambani-led Reliance Industries Ltd.
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The deal is being opposed by Amazon.com NV Investment Holdings LLC on the asset sale arguing that its investment of ₹1,400 crores in Future Coupons, which is one of the promoters of Future Retail, allows it to block asset sale to Amazon's competitors.
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