India's top retailer Reliance has called off its Rs24,713-crore ($3.4 billion) deal with Future Group, saying it "cannot be implemented" after Future's secured creditors voted against it. In August 2020, Future Group had announced plans to sell 19 companies to Reliance Retail Ventures.

 

The deal was at the centre of legal battles since 2020 after Future's partner Amazon legally blocked it, citing violation of certain contracts. Future denied any wrongdoing, reported Press Trust of India.

 

In a regulatory filing, Reliance said Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.

 

In August 2020, Future Group announced the Rs24,713-crore deal to sell 19 companies to Reliance Retail Ventures, stated the PTI report

 

"The secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented," said RIL, while updating on the scheme of arrangement for the transfer of retail and wholesale business and the logistics and warehousing business of Future Group to its subsidiary Reliance Retail Ventures and Reliance Retail and Fashion Lifestyle.

 

RRVL is the holding company of all the retail companies under the RIL Group.