After objections by Amazon and the delay it caused forced Mukesh Ambani to call off the deal to acquire Big Bazaar-owner Future Retail along with other group firms, the National Company Law Tribunal initiated its insolvency proceedings. Almost a year later Future Retail is still struggling to receive a resolution plan, after its creditors lost more than Rs 14,000 crore.
In another blow, Kishore Biyani has had to pull back his resignation as the executive chairman and director of the company, little more than a month after stepping down.
What caused the withdrawal?
Biyani's move was triggered by objections by the NCLT appointed resolution professional, who didn't agree with the resignation letter's contents.
The resolution professional has also filed an application against former and present directors of Future Retail, over the massive loss caused to creditors by their actions.
What next for directors?
It calls for the directors to contribute the Rs 14,000 crore amount to the company, to be paid back to creditors.
A forensic audit of the accounts of Future Retail from FY20, FY21 and FY22 had also been ordered by Securities and Exchange Board of India last year.
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