India's NCLT allows Future Group to meet shareholders, creditors

02 Mar '22

2 min read

Pic: Shutterstock

India’s National Company Law Tribunal (NCLT) recently allowed companies of the Kishore Biyani-led Future Group to convene meetings of its shareholders and creditors to seek their approval for the scheme it signed in 2020 that allows the group to sell its retail, logistics and warehousing businesses to Reliance Retail for about ₹25,000 crore.

“The schedule of the meetings of shareholders and creditors will be intimated in due course of time,” Future Retail said in a stock exchange filing.

NCLT had in September 2021 allowed creditors and shareholders to hold meetings over the deal, following which Amazon filed a petition objecting to such a meeting. NCLT dismissed that petition.

In 2019, Amazon acquired a 49 per cent stake in Future Coupons, the promoter entity of Future Retail, for about ₹1,500 crore. The US e-commerce company has been opposing the Future Group’s deal with Reliance Industries Ltd (RIL) since October 2020.

Future Retail shut most of its Big Bazaar stores since February 25 and its website is also down as it missed lease payments to Reliance Industries. RIL will open most such stores as Reliance stores in the next week and it is in the process of taking stock, re-branding and transferring 30,000 Future Retail and Future Lifestyle employees on to the rolls of Reliance SMSL, its manpower and staffing firm.

Fibre2Fashion News Desk (DS)

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