India’s top retailer, Reliance, has defended the sudden takeover of personal debt-ridden rival Future Retail’s store, saying the বৃদ্ধি 634 million (about Rs 4,800 crore) arrears have forced it to work beyond expectations, a letter from the company shows.
The takeover was part of a $ 900-billion (approximately Rs 68,11,875 crore) retail dominance race that sparked a bitter dispute where the Supreme Court of India would decide whether Reliance or Amazon.com would acquire futures assets.
The March 8 letter, seen by Reuters, reveals for the first time Reliance’s position on the night of February 25, when staffers suddenly came to take control of missed lease payments in many of its rival stores.
The move stunned not only Future but also Amazon, citing breaches of some agreements to legally block a $ 3.4-billion (approximately Rs 25,735 crore) deal between the two Indian giants since 2020.
In the letter, Reliance said it went “well and truly beyond expectations” to “keep the future out of harm’s way” as it took “significant steps” to ensure future business continuity and to ensure “no obstacles”. In their contract.
The measures include সহায়তা 634 million (approximately Rs. 4,800 crore) in financial assistance, including Rs. 1,100 crore unpaid lease rent and Rs. Working capital is Rs 3,600 crore.
Over the months, Reliance has leased more than 900 of Future’s 1,500 stores, though still allowing the company to operate them.
As Future has proved unable to pay arrears and losses on its retail operations, Reliance has faced “necessary circumstances” and decided to exercise its legal right to occupy stores, the letter added.
Neither Reliance nor Future immediately responded to a request for comment.
The future, which is on the verge of bankruptcy because of its growing losses, has previously called Reliance’s move “tough and one-sided.”
Before Amazon blocked it, Reliance, led by India’s richest man Mukesh Ambani, offered a 3.4-billion (approximately Rs 25,735 crore) deal to buy retail, wholesale and logistics activities in the future, as well as some other businesses.
But after the sudden seizure of Reliance’s stores, Future sought several assurances in a March 2 letter, which Reuters also saw, asking whether Reliance would stick to the deal without changing its price or terms.
In its March 8 response, Reliance said that future requests for reassurance should be viewed “in the light of the rapidly evolving situation.”
It added, “When and where the scheme (deal) is implemented, it will be in accordance with its terms.”
Thomson Reuters 2022