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NCLT allows insolvency proceedings against Future Retail Future Retail

NCLT allows insolvency proceedings against Future Retail

India Blooms News Service | @indiablooms | 20 Jul 2022, 10:12 pm

The Mumbai bench of the National Company Law Tribunal (NCLT) allowed a consortium of lenders, led by Bank of India, to initiate insolvency proceedings against debt-laden Future Retail, media reports said.

Issuing the order, the bench of Pradeep Narhari Deshmukh and Shyam Babu Gautam appointed Vijaykumar V Iyer of Deloitte as the interim resolution professional of the company.

The ruling is against US e-commerce giant Amazon India, which alleged that the Bank of India's petition to initiate insolvency proceedings against Future Retail was "malicious".

It has accused that Future Retail's lenders, including Bank of India, were colluding with the Indian retailer to sell its assets to Reliance Retail.

Amazon is a shareholder in Future Coupons owned by Future Group.

However, Bank of India argued that the conditions under the law to admit insolvency proceedings against Future Retail were “fully and wholly” satisfied.

Bank of India on April 14 filed insolvency proceedings against Future Retail for non-payment of dues.

Future Retail owes banks Rs 5,322.32 crore as of March 31, according to Bank of India’s petition in the NCLT.

Lenders to the company include Union Bank of India, State Bank of India, Bank of Baroda, and IDBI Bank, among others.