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Amazon moves Supreme Court against Future Group shareholders' meet

Amazon has sought the top court's direction to set aside the NCLT order that allowed Future Group firms to hold EGMs for Reliance Retail deal

Topics
Amazon | Supreme Court | Future Group

Dev Chatterjee  |  Mumbai 

Amazon
Amazon, which holds 50 per cent in a holding company of Future Retail, moved an arbitration court in Singapore.

American retail giant has moved the Supreme Court, appealing against a National Company Law Tribunal (NCLT) order that had allowed the Future Group’s listed to hold shareholders' and creditors' meetings to clear its proposed transaction with Ventures.

In its application, has urged the to pass an order to set aside the September 28 order of the NCLT, Mumbai Bench, pending disposal of the case by the top court.

On September 28, the NCLT Mumbai Bench had allowed firms to hold extraordinary general meetings (EGMs) of their shareholders and creditors to seek approval for selling assets to Following the order, has scheduled its shareholders/creditors meetings from November 10 onwards.

On October 18, the NCLT had also allowed Ventures to hold its creditors and shareholders meeting to acquire Future Group’s businesses.

Both Reliance and had announced in August last year that Reliance Retail Ventures would acquire the entire retail, wholesale, logistics, and warehousing businesses from Future as a going concern for Rs 24,713 crore. But the transaction was delayed due to litigation by

Amazon, which holds 50 per cent in a holding company of Future Retail, moved an arbitration court in Singapore, saying the deal would convert into a shell company while the businesses would be hived off and sold to its arch rival Reliance Retail. The matter is currently pending in the and at the Singapore arbitration centre.

While both Amazon and Future were litigating, the financial metrics of Future Group have deteriorated. All Future Group have reported massive losses, a fall in sales, and a substantial rise in debt in FY21 as compared to the previous financial year.

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First Published: Thu, October 21 2021. 23:50 IST
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