Future Group tells Delhi HC it will collapse if RIL deal falls through

Future Group on Friday told Delhi High Court that it will collapse if its over Rs 24,000 crore deal with Reliance Industries does not go through.

The single-judge bench of Justice J R Midha was hearing e-commerce giant Amazon's plea seeking enforcement of emergency award passed by Singapore International Arbitration Centre (SIAC), restraining Future Group from selling its retail assets to Reliance Industries Ltd (RIL). Amazon has also sought to restrain Future Group from taking any steps to transfer or dispose Future Retail's assets or shares held in the company by Kishore Biyani, founder of the Group.

Responding to Justice Midha's question, senior counsel Darius Khambata, appearing on behalf of Future Group, said the group will proceed ahead with its deal with RIL, adding that "if the transaction doesn't go through, I will collapse."

Khambata argued that the emergency award cannot be enforced and said the US-based company was seeking its enforcement only for "collateral purposes".

Senior advocate Harish Salve, appearing for Future Retail, said, "The company and jobs have to be saved. Reliance said I'll keep all the jobs and business. If this transaction cancels, the shops will be closed just because this big fat American company wants to make money."

Senior advocate Gopal Subramanium, who is representing Amazon, said that under the e-commerce company's agreement with Future Coupons, Future Group's retail assets were protected. However, Future Retail chose to go ahead with RIL, a restricted entity.

The court will take up the matter for hearing on Monday.

Also read: Amazon vs Future: Kishore Biyani likens US giant to Alexander the Great

Also read: ED investigating Amazon for FDI violations in Future Retail deal