Amazon, Future Retail fight: Senior counsel says restraining Future Retail-Reliance deal will lead to job cuts

Updated : January 30, 2021 01:14 PM IST

Harish Salve said that Amazon objected to the deal between FRL and RIL because it wanted to stall the latter’s expansion in the retail segment.

Continuing about FRL’s dire financial state because of the pandemic, Salve said, “If FRL goes into IBC, this investment (made by Amazon) is a bogey."

On Friday, the Delhi High Court issued a notice on Amazon's plea, seeking interim injunction against the deal between Future Retail Ltd (FRL) and Reliance Industries Ltd (RIL), which was worth Rs 25,000 crore.

The Divisional Bench of the HC is hearing a fresh plea filed by Amazon earlier this month, which sought to block the crore deal and attach FRL’s assets. Refusing to grant any interim relief to Amazon, the court has listed the case for further arguments on February 1.

Harish Salve, the senior counsel appearing on behalf of FRL, said on Friday that Amazon objected to the deal between FRL and RIL because it wanted to stall the latter’s expansion in the retail segment. "The American company doesn’t want this competition," Bar and Bench quoted Salve as arguing in the court.

Also read: Future Group's Kishore Biyani writes to employees, says Amazon creating ruckus

He said the main objective of the promoters of Future Group was to save the company prevent job losses and added that stalling the FRL-RIL deal would result in job losses.

"Reliance said they will save all the jobs and business. If this transaction cancels, the company will close,” Salve said, while claiming that COVID-19 had severely hit the company that ran Big Bazaar, as all their outlets were shut and revenue was zero.

Continuing about FRL’s dire financial state because of the pandemic, Salve said, “If FRL goes into IBC, this investment (made by Amazon) is a bogey."

Opposing Amazon's claims that FRL was under an obligation to seek permission from it to sell its retail assets, Salve said Salve the American giant had a deal with Future Coupons Private Limited (FCPL). He added that while FCPL had a shareholding agreement with FRL, FRL has no agreement with Amazon.

Also read: ED launches probe against Amazon for alleged FEMA violations

Salve also spoke about the time when India opened up FDI, and said that even then multi-brand retail investment wasn’t allowed because it would have affected the common shopkeeper.

Citing an example, he said that Marks & Spencer could set up shop in India, but a giant like Walmart can’t, because that would lead to many local shopkeepers shutting shop.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Published : January 30, 2021 01:13 PM IST

Amazon, Future Retail fight: Senior counsel says restraining Future Retail-Reliance deal will lead to job cuts

You May Also Like

IndiGrid to raise up to Rs 1,000 crore via NCDs

As govt liberalises vaccine sales, Karnataka to purchase 1 crore doses of Covishield

Haryana: 1,710 doses of COVID-19 vaccine stolen from government hospital in Jind

Trending on CNBC-TV18

recommended for you