The All India Consumer Products Distributors’ Federation, FMCG Distributors, and Traders Association Delhi, and NGO PRAHAR have stated that if the deal between Reliance and Future Group fails, then about 11 lakh people will lose their jobs. Due to the continuous prohibitions being imposed by Amazon, this is causing a crisis between the two organizations. There are fears that if this deal fails, many employees and suppliers will lose their livelihood.
Future Group, which runs the retail store, has alleged that American retail giant Amazon had sought compensation of Rs 290 crore ($ 40 million) from Reliance Industries (RIL) against its agreement to sell the business. Future Group and Reliance had decided that all the businesses including Big Bazaar, Easyday, Eucalyptus, Central, Brand Factory would continue to operate as before. This will not end the livelihood of employees and suppliers. If this deal fails, many employees and suppliers will lose their livelihood.
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In August 20019, an agreement was made to buy a 49 percent stake of Future Group Limited, an unlisted company of Amazon Future Group. The future group holds a 7.3% stake in Future Group’s listed company Future Retail. Amazon had also signed an agreement with the Future Group that it can also buy information details between 3 and 10 years. Amazon had moved the Singapore arbitration court to protest against the Reliance-Future Group deal. Future Group has also said that Amazon’s claim that it was not aware of its agreement with Reliance was not correct.
The Supreme Court has stayed the deal
On Amazon’s appeal, the Supreme Court has stayed the further process in the deal between Reliance-Future Group. Also, the court has issued notice to Reliance Industries and Future Retail seeking its responses. The Supreme Court has asked the National Company Law Tribunal (NCLT) to continue proceedings if it is between Reliance Industries and Future Retail. However, the Supreme Court has said that NCLT will not be able to take a final decision in the matter. If this deal is not finalized between the two companies then 11 lakh jobs in India will be at stake.
