Debt-ridden Future Retail, which is insolvent, revealed on Friday that its Resolution Professional has filed a complaint with the National Company Law Tribunal (NCLT) against the company’s past and current directors for creating a loss of Rs 14,809.44 crore to creditors.
In the application filed before the Mumbai bench of the NCLT, the Resolution Professional (RP) has sought direction from the tribunal against the present and erstwhile directors of FRL to contribute the amount to the company, said Future Retail Ltd (FRL) in a regulatory filing.
According to the company, as of the date of filing of the said application, based on the limited information available the RP has calculated the potential loss to FRL’s creditors to be Rs 14,809.44 crore, and has sought a direction against the respondents to the said application to contribute such amount to FRL.
It stated that RP has filed an action with the NCLT Mumbai against the company’s directors/former directors under the Insolvency and Bankruptcy Code 2016.
After defaulting on debts, Future Retail was put into insolvency proceedings by its lender, Bank of India. On July 20, 2022, the Bombay bench of the National Company Law Tribunal decided that FRL be declared bankrupt.
Kishore Biyani, the company’s promoter, stood down from the suspended board of FRL and resigned as Chairman and Director in January. The exchange regulator SEBI had requested a forensic examination of FRL’s books for the fiscal years 2019-20, 2020-21, and 2021-22 in August.
The regulator has also requested that FRL’s Related Party Transactions (RPT) with three other Future group companies be audited: Future Enterprises, Future Consumer, and Future Supply Chain Solutions.
