Future urges Singapore tribunal to modify order to exclude FRL - Hindustan Times
close_game
close_game

Future urges Singapore tribunal to modify order to exclude FRL

ByAnirudh Laskar, Livemint, Mumbai
Mar 18, 2021 08:18 AM IST

Future group has realised that Future Retail cannot proceed with the deal owing to the SIAC order.

Future Group, which is locked in a legal battle with Amazon.com Inc., has asked a Singapore arbitration court to remove Future Retail Ltd from the scope of its order that temporarily blocked the Kishore Biyani-led group from selling its assets to billionaire Mukesh Ambani.

Home Town - One-stop destination for home solution from Future group. The store is located at Rajarhaat New Town, Kolkata. (Indranil Bhoumik/Mint)
Home Town - One-stop destination for home solution from Future group. The store is located at Rajarhaat New Town, Kolkata. (Indranil Bhoumik/Mint)

In a modification application on 11 March, Future Group has asked the Singapore International Arbitration Centre (SIAC) to review its October interim ruling, two people with direct knowledge of the development said on condition of anonymity.

Hindustan Times - your fastest source for breaking news! Read now.

“Future Group has realised that due to the Singapore court’s order, Future Retail cannot proceed with the deal with Reliance Industries Ltd,” said one of the two people. “The group’s application seeks an interim stay on the emergency arbitration order and removal of Future Retail from the scope of the order till the final outcome is decided.”

The latest plea is an attempt by Future Group to pave the way to complete the 24,713 crore asset sale deal with Reliance Industries.

The modification application in the Singapore tribunal follows the Delhi high court and the Supreme Court upholding the validity of the arbitration court’s order.

Amazon has challenged Future Group’s asset sale to Reliance on the grounds that it violated a contract that Kishore Biyani entered with Amazon for an investment in a group company. The cash-strapped Future Group is trying to expedite the deal to pay debtors and save the Big Bazaar retail chain from collapse.

Emails sent to spokespeople for Future Group, Amazon and Reliance Industries remained unanswered.

The real battle is, however, between Amazon and Reliance over a bigger slice of the Indian retail market that is estimated to exceed $1.3 trillion by 2025. Amazon founder Jeff Bezos has made India a key focus of its global plans. Amazon fears that access to assets of Future Retail will give rival Reliance Retail a crucial edge in the battle for dominance of the Indian market.

The Reliance-Future deal is still to get court clearance because of Amazon’s lawsuits against Future Group.

Amazon’s contends that Future Group can’t sell assets to 30 specified entities, including Reliance Industries, without the US company’s consent as per a commercial agreement signed in August 2019.

Future Group, which has been caught in the battle between Bezos and Ambani, has been struggling to repay around $3 billion worth of dues to lenders.

The Reliance-Future deal is awaiting clearances from the Supreme Court and the National Company Law Tribunal (NCLT) right now. The case in the Supreme Court is scheduled to be heard on March 19.

But even as the legal clearances are awaited, Reliance has extended operational support to Future Retail to prevent a deterioration in asset quality. Reliance has also extended an internal deadline for the completion of the purchase by six months to accommodate for delays caused by the legal battle. Some of Future Retail’s lease agreements for stores have been transferred to Reliance to ease the burden on the troubled retailer and avoid defaults.

Integration of the workplaces of Reliance Retail and Future Group has also begun, and many Future Group employees have started undergoing training to work under Reliance Retail. On February 22, the supreme court directed National Company Law Tribunal not to approve the deal till the former pronounces its final judgement.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On