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Future Group Gets Court Nod To Hold Shareholder Meet For Reliance Deal

Amazon's objection to Future Group's scheme application is 'premature', says NCLT.

Signage for Fashion @ Big Bazaar, the fashion unit of Big Bazaar operated by Future Retail Ltd., stands at a Big Bazaar hypermarket in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
Signage for Fashion @ Big Bazaar, the fashion unit of Big Bazaar operated by Future Retail Ltd., stands at a Big Bazaar hypermarket in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

After eight months, the Future Group can finally convene a meeting of its shareholders and creditors for consolidation of its entities, the first step in its ultimate sale to Reliance Retail Ventures Ltd.

The Mumbai bench of the National Company Law Tribunal on Tuesday allowed the retailer to seek an approval for the scheme of arrangement between 20 Future Group entities, including six listed companies, with Reliance Retail Ventures, and Reliance Retail Ltd. and Fashion Lifestyle Ltd.

The tribunal had reserved its order in February after Amazon.com NV Investment Holdings LLC objected to the Future Group's scheme application.

The tribunal dismissed Amazon's objection as "premature", a lawyer involved in the matter told BloombergQuint. NCLT's detailed order is awaited.

Even as the Future Group seeks shareholder and creditor approval, its litigation with Amazon is playing out in the Supreme Court.

In the latest round, the Kishore Biyani-controlled group filed a special leave petition after the apex court upheld the validity of the international emergency arbitrator's order and set aside a stay by a Delhi High Court division bench on the single-judge order.

(This is a developing story)