Reliance Industries lends operational support to Future Retail: Report
Due to the legal battle between Amazon and Future Group, RIL has reportedly extended an internal deadline to complete acquisition of Future's retail assets by six months
March 10, 2021 / 09:32 AM IST
Reliance Industries (RIL) will extend operational support to cash-strapped Future Retail, while the proposed deal awaits clearance from the National Company Law Tribunal (NCLT), Mint reported.
Due to the legal battle between Amazon and Future Group, RIL has extended an internal deadline to complete the acquisition of the Future's retail assets by six months, the report said.
"Due to the ongoing legal battle with Amazon, it is impossible to get all the regulatory nods before May, which is why the deadline has been extended further by at least six months," a source told the paper.
Spokespeople for Mukesh Ambani-led RIL, Kishore Biyani-led Future Group, and Amazon India had not yet responded when contacted by Mint.
Some of Future Retail's lease agreements for stores have been transferred to RIL, to help the former avoid defaults, the report added.
Without this deal, Future Retail stands to collapse, and several people would lose their jobs.
Public Response Against Helplessness and Action for Redressal (PRAHAR), an NGO, estimates that around 11 lakh people could lose their livelihood, and 6,000 vendors and suppliers would lose their biggest customer if the deal fails.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.