The Resolution Professional of Future Retail Ltd. has approached the Mumbai bench of the National Company Law Tribunal to bar Kishore Biyani, the founder and CEO of Future Group, and several others from the refinancing process due to allegations of fraudulent transaction.
The highlighted transaction was identified as fraudulent through a report presented by Nangia and Co. LLP, which acted as the transaction review auditor. The entity was designated by the RP to assist in executing the array of responsibilities entrusted by the Insolvency and Bankruptcy Code.
The report unearthed an assortment of transactions that warrant thorough scrutiny and potentially corrective action.
Apart from Kishore Biyani, the others excluded from the debt recast are Rakesh Biyani, Jacob Mathew, Ravindra Dhariwal, Gagan Singh, and Shailendra Bhandari. The company has also disclosed that the impact of the detected fraudulent transaction amounts to Rs 40.53 lakh.
In July 2022, Future Retail, a prominent multi-format retailer in India, faced insolvency due to a loan default. This year, the NCLT extended the insolvency process deadline by 90 days, until July 15.
This was further extended till Aug. 17 and now, the company has again approached the tribunal for an extension till Sept. 15, according to a regulatory filing.
A total of 49 companies, notable among them being Reliance Retail Ltd., Jindal Power Ltd. and the Adani Group have expressed their interest in acquiring Future Retail.
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