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Banks start tagging Future Retail as NPA, urge apex court to allow bidding by Amazon and Reliance

The Supreme Court refused to grant any interim relief to Future Retail against NPA classification of its accounts.

February 03, 2022 / 05:28 PM IST

Twenty seven lenders to Future urged the apex court to let the two “suitors” Amazon and Reliance bid for Future Retail to facilitate recovery rather than take a long-winding legal route to resolution even as the banks started classifying the group’s retail assets as NPAs.

Future failed to sell its retail assets to Reliance for $3.4 billion after business partner Amazon went for arbitration and moved court arguing that Future Retail had violated certain non-compete contractual terms. Future denied this.

Amazon wants to own a part of Future Retail as part of its plans to dominate Indian retail.

“There are two suitors for Future Retail and we (banks) have a stake in it and we are entitled to sell the assets,” senior advocate Rakesh Dwivedi arguing for the banks said. “Let the two suitors bid for it, why litigate for one year for an uncertain outcome about who will get it.”