Lenders to Future Retail have appealed to the Supreme Court to allow Amazon and Reliance to bid for the Kishore Biyani-led retail company so that the consortium of banks can recover the dues quickly. The lenders had filed a plea with the top court seeking permission to initiate insolvency proceedings against Future Retail after it defaulted on payments.

Future Retail has 27 lenders, with a collective exposure of ₹17,000 crore. Recently, Future Retail defaulted on multiple payments despite a one-time-debt- restructuring.

Tussle with Amazon

Future Retail, in its counter petition, said that it was unable to pay the lenders because of its ongoing tussle with e-commerce giant Amazon. On Thursday, the lenders said the said matter had nothing to do with its dues, instead related to the ‘public interest’ because it was depositors’ money. Lawyers representing the banks also said that if the dues weren’t paid soon, the debt could rise to ₹25,000 crore.

“Amazon and Reliance are both cash rich and can offer above ₹17,000 crore for Future Retail. This is a sure-shot way that the banks get their money and whoever wins, gets Future Retail,” said a lawyer representing the banks.

During the hearing, Harish Salve, senior counsel for Future Retail, asked for two weeks to discuss the issue with the lenders before declaring Future Retail a ‘non-performing-asset’.

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Future Retail’s lenders also urged the Supreme Court to ask the Delhi High Court to decide on the maintainability of the arbitration award in favour of Amazon. Future has argued that the award was invalid since the Competition Commission of India had already withdrawn the consent it had given Amazon to invest in the Future Group.

On the other hand, Amazon’s counsel said the American company is still willing to talk to the lenders of Future Retail. The Supreme Court has reserved the order in the matter after hearing all sides.

In August 2020, Future Retail sold its assets to Reliance for ₹24,713 crore subject to approvals. This deal was challenged by Amazon, which had invested ₹1,400 crore in Future Coupon Private Limited (FCPL) in 2019. Amazon said it had invested in FCPL on the condition that Future Retail could not sell its assets to restricted parties including Reliance. This dispute has put Future Retail in a financial mess as it cannot pay its dues without fresh investments.