reliance: Future Retail employees ask Supreme Court to allow asset sale to Reliance Retail

NEW DELHI: Employees of debt-ridden Future Retail (FRL), the parent of supermarket chain, Big Bazaar, have asked the Supreme Court to clear the company’s asset sale to Reliance Retail and rule against US e-tailer Amazon.
The employees cited the risk of job losses for around 27,000 people and financial difficulties, showed a November 20 legal filing reviewed by TOI.
“Between April-July 4 2020, the salaries of employees saw significant cuts, in the range of 40- 50%. Further, even the reduced salaries could not be paid on time and payments were often made in tranches,” said the FRL Employee Welfare Association in the filing, which is likely to be heard by the apex court on December 8.
The Kishore Biyani-led Future Retail has faced numerous legal challenges thrown at it by Amazon, as it tried to obtain regulatory nods to sell its retail and logistics businesses to Reliance Retail for Rs 24,700 crore.
Amazon, which has a 49% stake in Future Coupons (FCPL), an unlisted Future Group company, alleged that by agreeing to try to sell to Reliance Retail, FRL breached pre-existing agreements struck between both.
The e-tailer said that it has offered help to FRL, which was spurned by the latter.
“…the employees also apprehend that if, as a result of delay in obtaining approval for and implementing the Scheme, Reliance were to withdraw from the Scheme, or for any other reason the scheme is stopped, FRL will be pushed into liquidation, resulting in its 27,000 employees losing their livelihoods,” said the FRL Employee Welfare Association. “The families of employees will be on the streets.”
Recently, independent directors at FRL wrote to the Competition Commission of India (CCI) claiming that during seeking the antitrust authority’s approval for its 2019 investment in FCPL, Amazon made statements that are contradictory to its own internal communications. They accused the Jeff Bezos-led company of FEMA and FDI violations.



Source link

Leave a Reply