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9, December 2006 Pragati Maidan, New Delhi.
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Reliance Industries Ltd (RIL) said on Thursday it was withdrawing its bid for ailing Indian co-operative retail chain Super Bazar over the government’s refusal to hand over management and control. “We would like to withdraw our offer in view of the government’s refusal to change the law,” Soli Sorabjee, a senior counsel for Reliance, told the Supreme Court. Reliance, which recently forayed into retail, had bid Rs 288 crore for the chain. The company had said at the previous hearing it would not want to invest a huge amount of money unless it had effective management and control over Super Bazar, which would require a change in the existing law for co-operatives. The co-operative law has strict limits on the shareholding, management and control of co-operatives. A co-operative unit may be merged, amalgamated or taken over by another co-operative unit. But it cannot be taken over by a private company, according to the law. The government will examine offers from Indian Potash Ltd and the Indian Labour Co-operative Society for the revival of the ailing Super Bazar chain.Reliance Retail Ltd is spending more than $5.5 billion in setting up formats ranging from convenience stores to hypermarkets in India. The retail company also manages the supply chain and backoffice operationsof several co-operative stores in Mumbai.
Date: 15-Mar-2007
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