The Supreme Court’s latest verdict upholding Singapore’s Emergency Arbitrator’s (EA) decision has proved to be a huge setback for debt-laden Future Group. Lockdowns have caused huge losses to Future Retail’s operations as most its large popular retail chains such as Big Bazaar, Nilgiris, Fashion at Big Bazaar remained shut.
The Supreme Court’s decision further impedes the group’s plan to sell its retail, wholesale and other assets to Reliance Industries for Rs 24,713 crore.
The acquisition would have given Reliance an edge in India’s retail market that is set to touch $1 trillion in 2025. The deal would have also helped Reliance expand its clout in the grocery and fashion retail market, where it has already built a sizable business.
In August 2020, RIL Reliance Retail Ventures, a unit of Reliance Industries (RIL) announced plans to acquire the retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis.
Meanwhile, in a petition, Amazon argued the deal violated its investment agreement with Future Group that barred the company from selling its retail assets to Mukesh Ambani’s conglomerate, among other specified entities without Amazon’s consent.
