With the possibility of insolvency proceedings looming large on Future Retail, investors fear a complete erosion of the share value and also allege they have no one to safeguard their interests.
Vijay Kulkarni, an advocate and a Future Retail shareholder, has urged all the aggrieved investors to come together on one platform and file a class action suit against Future Retail Board.
” We need to file a class-action suit at the National Company Law tribunal by appointing a team of professional lawyers. Even if 10% of total investors come together or even 100 to 200 of us join hands, we can make our voices heard, it will give us strength to fight this battle. If we delay this further, it will be our loss only, he said in a YouTube video.
Underlining the need for investors to make proper submissions at NCLT, Kulkarni said, “All our grievances must come to court. We need to highlight the injustice meted out to us. We should also point out how Reliance gets benefitted even in absence of a deal. We need to set a precedent to save investors from FRL-like fiascos.”
Speaking with India Ahead News, Kulkarni also questioned Future Retail’s lack of interest in Amazon’s offer.
“When it comes to Amazon, Future Retail says, we will fight them in the Court. They never show any interest in negotiations with Amazon, nor do they put any effort in resolving the crisis with a proactive approach, which they have only shown for Reliance,” he told the news channel.
“When you are unable to pay your debts, when you are unable to do your business, then it’s a case for insolvency but Why should Future retail go for insolvency when Amazon is claiming that they have an injunction order from SIAC; till date, nothing is set aside as far as those awards are concerned,” he added.
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Several Future Group companies are selling their assets to pare debts after their creditors last month voted against the Rs 24,713 crore deal with Mukesh Ambani’s Reliance Retail.
The lender of its flagship firm Future Retail Ltd, which operates retail stores under brand formats such as Big Bazaar, FBB and Easyday, has already taken the company to the insolvency tribunal NCLT. It has already defaulted Rs 5,322.32 crore.
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