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Future Retail Employees File ‘Special Leave’ Plea in Supreme Court to Intervene in Amazon Challenge Proceedings


The Future Retail Employee Welfare Association on Tuesday filed a special leave application to the Supreme Court to intervene in the ongoing litigation between the company and Amazon over its 2019 deal with Reliance.

The employees’ association said the interests of nearly 27,000 Future Retail employees have been affected by the orders made in arbitration proceedings. They say the undue delay of the Future-Reliance Retail deal has raised concerns among employees that the deal will not come to fruition.

“If Reliance were to withdraw from the program, or if it is terminated, FRL will be put into liquidation, resulting in the loss of 27,000 employees of their livelihood,” said the staff association.

Amazon is trying to block the sale of Future Group’s retail, wholesale and logistics operations to Reliance Industries Ltd for Rs 24,713 crore for allegedly breaking contracts. He argued that the 2019 deal he had with a Future unit contained clauses prohibiting the group from selling its retail assets to anyone on a “restricted” list that included Reliance.

The Singapore International Arbitration Center (SIAC) granted an interim award on October 21 in favor of Amazon. The order denied Future Retail’s request to lift the suspension of the company’s 24,713 crore deal with Reliance Retail. He ruled that Future Retail was a party to the ongoing arbitration dispute between Amazon and Future Group regarding the sale of its assets to Reliance Retail.

The FRL staff’s petition to the Supreme Court says employees have remained without recourse in the dispute between their company and Amazon despite orders having a direct and substantial impact on employees.

He added that the COVID-19 pandemic has severely affected Future Retail and employee salaries have been cut by 40-50% and medical insurance benefits have not been renewed either.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

(Edited by : Kanishka Sarkar)


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