Bank of India has moved the National Company Law Tribunal (NCLT), filing a petition to initiate
insolvency proceedings against debt-ridden Future Retail Ltd.
“Bank of India (BoI) has served an advance intimation of filing an application under Section 7 of the
Insolvency and Bankruptcy Code, 2016 against the company for default on non-payment of monies
due in terms of the Framework Agreement entered into between the company and Bank of India,”
FRL said in a regulatory filing.
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The Future group firm said it has received a copy of the petition and is in the “process of taking legal
advice”.
BoI, the lead banker of the consortium of lenders of FRL, had last month through a public notice in
newspapers claimed its charge over the assets of FRL and warned the public against dealing with
assets of the Kishore Biyani-led Future Group firm.
FRL is part of the ₹24,713 crore deal announced by Future Group in August 2020, under which it is to
sell 19 companies operating in retail, wholesale, logistics and warehousing segments to Reliance
Retail Ventures Ltd. (RRVL).
Future Group companies will be conducting meetings of their respective shareholders and creditors
between April 20-23, 2022 to seek their approval for the ₹24,713 crore deal.
The deal is contested by Amazon and is under litigation at various forums, including the Supreme
Court, Delhi High Court and Singapore International Arbitration Center.
