Big relief to Future Group from NCLT, permission to convene shareholders' meeting for deal with Reliance
The National Company Law Tribunal (NCLT) on Tuesday allowed Kishore Biyani-led Future Group companies to convene a meeting of shareholders and creditors. Sources said the NCLT rejected Amazon's application, terming it as immature.
The National Company Law Tribunal (NCLT) on Tuesday allowed Kishore Biyani-led Future Group companies to convene a meeting of shareholders and creditors. Sources gave this information. Future Group companies will organize this meeting to seek permission to sell their assets to Reliance Retail Limited. Earlier, a two-member bench of NCLT, Mumbai, dismissed the appeal filed by e-commerce giant Amazon against the scheme of merger of Future Group companies.
Emails sent by Amazon and Future Group in this regard have not received any response so far.
Amazon had moved the NCLT against the merger scheme, raising the issue of non-completion of arbitration proceedings against Future Retail.
Sources said the NCLT rejected Amazon's application, terming it "immature". Sources said that the NCLT bench observed that there is no problem in convening a meeting of shareholders and creditors to consider the scheme as when the scheme will be sent to NCLT for final approval after getting approval from the parties concerned, Even then Amazon will have the right to file its objection.
Sources said the NCLT also pointed out that the Supreme Court had only restrained it from passing the final order on the approval of the scheme. Now Future Group will have an opportunity to obtain all necessary permissions from the shareholders and creditors. According to sources, if Future Group wins in the arbitration court, it will help in saving up to six-nine months in implementing the scheme.
As per the arrangement between Future Group and Reliance Retail, Future Group will consolidate its retail, wholesale, logistics, and warehousing assets as a single entity and then transfer them to Reliance Retail.
In August last year, Reliance Retail Ventures Limited (RRVL) said it would acquire Future Group's retail, wholesale, logistics, and warehousing businesses for Rs 24,713 crore.