Resolution Talks Between Future Group-Amazon Failed: Lawyers Tell SC

An out-of-court dialogue between Future Group, Reliance Industries and Amazon to resolve the legal battle for Future Group's assets has not led to a resolution, Future Coupons and Amazon's counsels told the Supreme Court (SC).

On March 3, Amazon had proposed a dialogue with Future Group and Reliance Industries to end the legal deadlock and SC had given them time till March 15 to come up with a settlement. Also, Amazon told SC that it would like to begin arbitration proceedings in Singapore which were put on hold by the Delhi High Court. Future Group agreed to this.

Amazon’s counsel argued that the highest court has been told that no assets will be transferred; it's been recorded and during pendencey the orders have been flouted. Future Group’s counsel said that nothing had been transferred and that rents had not been paid for over two years. Future Group’s counsel also argued that the company had no money and landlords were terminating its leases.

The SC Bench also said that it was getting a feeling that by adjourning the matter, it was being lenient.

On Tuesday, the SC allowed Amazon to file an interim application and the case was adjourned until March 16.

According to a source in the know, Amazon will file an interim application asking for resumption of tribunal hearing and also an injunction on Future Retail from transferring its assets to Reliance Industries.

In a newspaper advertisement which appeared on Tuesday, the US ecommerce major accused Future Retail and Reliance Industries of fraud over transfer of stores. Reliance Industries started the takeover of Future Group stores on February 25.

On March 9, Future Group said in two stock exchange filings that it received termination notices on March 7 and March 8 for 947 stores which it had sub-leased from Reliance entities.

The company received termination notices for 342 Big Bazaar and Fashion@Big Bazaar (fbb), 493 small format stores which include easyday and Heritage stores. It also said that these stores have been historically contributing approximately 55 per cent to 65 per cent of retail revenue operations of the company.

Future Lifestyle has also received termination notice for 78 Brand Factory stores and 34 Central stores and these stores have also been contributing to around 55 per cent -65 per cent of the company’s retail revenue, it said in its stock exchange filing.

Future Group has approximately 1,500 stores and the remaining stores (around 550 stores) are still with Future Group.

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