Reliance opts out of Super Bazar bid

Mukesh Ambani-led Reliance Industries today opted out of the race to revive the capital's defunct shopping cooperative Super Bazar, citing the government's reluctance in giving it full management control.

Senior counsel Soli Sorabjee, appearing for Reliance, submitted before the Supreme Court that the company has decided to withdraw its takeover bid as the government had refused to amend the Multi-State Cooperative Societies Act, 2002 to enable it gain overall management control.

A Bench headed by Justice B P Singh also accepted Reliance's plea to withdraw Rs five crore earnest money deposited with the official liquidator, appointed by the court to look into the affairs of Super Bazar.

Reliance had evinced interest in reviving Super Bazar and had put in the highest bid of Rs 288 crore. However, the bid was opposed by Indian Potash (IPL), which in a joint bid with the Indian Labour Cooperative Society (ILCS), had offered to match the offer.

The government had invited bids in May 2006 after the Supreme Court asked the Centre to examine ways to revive the cooperative super market.

The bench also asked the counsels appearing for the government, IPL and ILCS to consult Registrar of Cooperative Societies on the issue and submit a report in a week indicating steps to be taken to work out the modalities of the revival scheme.

It also directed the IPL-ILCS combine to deposit the money in the court for employees' liabilities so as to secure them. The matter will come up for further hearing on March 21.