As per the All India Consumer Products Distributors over 500 distributors have dues over Rs 700 crore pending from the Future Group since March 2020. As Future Group awaits markets regulator SEBI’s approval for the deal to sell its retail, wholesale and logistics business to Reliance Retail, the All India Consumer Products Distributors Federation (AICPDF) has also written to SEBI urging it take a decision at the earliest on this transaction.
The federation states these distributors, were hoping the Reliance deal would mean their dues would be cleared. Pending dues, along with a decrease in business are causing financial strain on of distributors, forcing many to sell or mortgage family assets like house and jewelry to tide over the crisis.
However, with Future Group now embroiled in a legal battle with Amazon over the deal, regulatory approval is taking longer than expected, and post SEBI’s clearance too, distributors believe it would take three to four months more for the deal to be closed and dues paid back.
These distributors had also written to Future Group Chairman Kishore Biyani days after the Reliance deal was announced to clear outstanding dues. Responding to the letter written post the Reliance deal, Biyani wrote to all suppliers and creditors assuring them that they would be paid their dues in full and the transaction with Reliance Retail includes a specific amount that has been set aside to pay dues owed to suppliers and creditors.