The war of business giants in India continues. If the Future Group had been in the fray against Amazon for so long, Reliance under Mukesh Ambani, one of the richest men in the world, is now on the scene. Amazon is owned by the world’s richest man, Jeff Bezos. While many believe that Reliance will be the scapegoat, many are waiting to see who will win the battle of billionaires. Amazon’s lawsuit against Reliance’s Future Retail Purchase is pending before the Supreme Court. However, Reliance Retail and Reliance Fashion have now approached the National Company Law Tribunal (NCLT).
Reliance is seeking approval to merge the assets of Reliance and Future companies. Reliance is investing Rs 24,713 crore to buy Future Company. The Mumbai bench of the NCLT has adjourned its judgment on the application. The verdict will be announced on June 21. Reliance is represented by senior lawyer Janak Dwarkadas. The application calls for a meeting of those working with the two companies and for the use of logistics and warehouses.
Future Group announces sale of its business to Reliance on August 29, 2020. However, Amazon has been embroiled in a legal battle with Future Group over the deal. Amazon has filed a case in the Supreme Court after the Delhi High Court ruled in its favor. The Supreme Court has not yet ruled on the case. Amazon declined to comment on the latest developments. The company replied that the case was being considered by the court. The Reliance-Future sale has already been approved by the Competition Commission of India and SEBI. The Supreme Court has said that the NCLT can proceed with the case. But the condition is that the final verdict should not be pronounced.
In 2019, Amazon invested in Future Group ‘Future Coupons’. Under the agreement reached at the time, Future Group, a major company, had written to Amazon that it would buy it for the next 3-10 years. Amazon has come out and shown that the company was sold to Reliance in violation of this. The company, which buys Future Group properties, is expected to be the king of Indian retail sales. If it is owned by Reliance, it will not be easy for Amazon to enter the sector. Reliance already has a strong network. Combined with the strength of the Future Group, it is unlikely that any company other than Amazon will be able to catch up.
