Future Group Responds To Amazon's Warning Against Meeting To Approve Assets Sale To Reliance

Amazon and Future Group are locked in multi-forum litigation in connection with FRL's merger deal to the tune of Rs 24,500 crore with Reliance Retail Ltd.

(File Photo/ Getty)

Mumbai: Hours after e-commerce giant Amazon warned Future Retail Ltd (FRL) against holding meetings of its shareholders and creditors next week to approve the sale of its retail assets to billionaire Mukesh Ambani's Reliance Retail, the FRL clarified that the meeting has been convened as per directions and order of the National Company Law Tribunal (NCLT).

Responding to Amazon's warning, Future Group released an official statement where it said: "With reference to the above subject matter and news items appearing in various newspapers/publications, we would like to clarify that the Meeting of Equity Shareholders, Secured Creditors and Unsecured Creditors of the Company which are scheduled 20th April, 2022 and on 21st April, 2022 respectively has been convened as per directions and order of Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT).

"We reiterate that the above meetings have been convened in compliance of the directions given in the order dated 28th February 2022 issued by Hon’ble NCLT. The said order has been issued by the Hon’ble NCLT, after considering all the facts and information submitted by the parties and specific objections filed by Amazon.Com NV Investment Holdings LLC vide an intervening application and the order dated 15th February 2022 issued by Hon’ble Supreme Court on the same subject matter," the statement read further.

Amazon has warned Future Retail against the holding of next week's meetings of its shareholders and creditors to approve the sale of its retail assets to Reliance Retail as part of the Rs 24,500 deal.

Such meetings are illegal and would breach 2019 agreements, when Amazon made investments into FRL's promoter firm, the US e-commerce major told Future Retail in a letter to Future Group founder Kishore Biyani, his daughter Ashni Kishore Biyani and other promoters.

Future Retail, furthermore in its statement, asserted that same is a right available to all the shareholders of the company and if any one of them is restricted due to any contractual obligation entered into by them as part of private arrangement, the same would not affect the proceedings of the meetings convened as per the aforesaid direction, in any manner.

The fresh round of tussle comes days after the NCTL allowed Future Retail and Reliance Retail to conduct meetings of its shareholders and creditors seeking their approval for a composite scheme of arrangement between the two group companies.

Interestingly, the NCTL had even rejected Amazon's plea which is opposing Future Group's deal with Reliance Retail.

Amazon and Future Group are locked in multi-forum litigation in connection with FRL's merger deal to the tune of Rs 24,500 crore with Reliance Retail Ltd, after the e-commerce giant dragged FRL into arbitration at the Singapore International Arbitration Centre (SIAC) in October 2020.