NEW DELHI: The resolution professional of future Retail has allegedly detected Rs 14,809 crore transactions, which could be in the nature of fraudulent, extortionate and preferential in nature, and accordingly moved the National Company Law Tribunal (NCLT) against erstwhile directors of the company.
The company, which is undergoing corporate insolvency resolution process (CIRP), in an exchange filing has said that the resolution Professional of Future Retail Limited has filed an application before NCLT against directors/ erstwhile directors of FRL under Section 66(2) and Section 67 read with Section 60(5) of the Insolvency & Bankruptcy Code 2016.
“As on the date of filing of the said application, basis the limited information available, the RP has quantified the potential loss that has been caused to the creditors of FRL to be Rs 14,809.44 crores, and has sought direction against the respondents to the said application to contribute such amount to FRL,” reads the exchange filing.
The insolvency laws of the country allow NCLT to fix liabilities on person(s) who are responsible for carrying out such transactions with the intent to inflict losses on the creditors. The law also allows clawback of the amount involved in such transactions.
Insolvency proceedings against Future Retail were initiated by the Bank of India after the erstwhile Kishore Biyani-led company defaulted on a payment of 856 crores. The Mumbai bench of the NCLT admitted BoI’s insolvency plea on 20 June 2022. The financial creditors have submitted claims (which have been admitted by the RP) of around Rs 19,000 crore.