Future Retail has requested a tribunal to obtain key permission for its asset sale of $3.4 billion to Reliance Industries

The legal battle ensuing between the companies Amazon, Future Retail and Reliance has been going on since last year itself.

TechSamvad February 01, 2021 19:04:02 IST
Future Retail has requested a tribunal to obtain key permission for its asset sale of $3.4 billion to Reliance Industries

In August 2020, Biyani had entered into a Rs 24,713 crore agreement with Reliance Retail.

Future Retail moved an appeal to the National Company Law Tribunal (NCLT) requesting clearance for its arrangement with Reliance, the company's legal representatives told the high court in Delhi. This is another move from Future to secure all permissions for the completion of the Rs 24,731 crore (around $3.4 billion) contract with Reliance.

Last week, stock exchanges cleared Future's deal with Reliance, but according to Indian law, another crucial approval is necessary from the National Company Law Tribunal (NCLT). The approval is vital for Future to seal the transaction without which liquidation could be faced by the company. The legal battle ensuing between the companies Amazon, Future Retail and Reliance has been going on since last year itself.

(Also Read: Reliance Retail, Future Group's Rs 24,000 crore deal cleared by market regulator SEBI)

Amazon is also facing an investigation from ED (Enforcement Directorate) after being accused of an alleged violation of the foreign exchange rules and laws of the country. Traders’ body CAIT (Confederation of All India Traders) had also written to the Commerce and Industry Minister accusing Amazon and various other e-commerce businesses for ‘daylight robbery’.

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