Banks passing the parcel in Future Retail

The struggling retailer’s directors have been accused of causing a massive loss to its lenders, but the banks also seem to have conveniently dragged their feet on the matter.

Last Friday, the resolution professional overseeing the insolvency proceedings of debt-ridden Future Retail filed an application before the National Company Law Tribunal against the company’s directors for causing its creditors a loss of nearly Rs 14,810 crore.

The application was filed under sections of the Insolvency and Bankruptcy Code that deal with fraudulent trading and seek to impose a liability on the debtor’s partners or directors. 

The move comes almost a month after the deadline for potential buyers to submit their bids for Future Retail expired; no offers were received. The development throws a wrench into the plans of Kishore …

Author

T Surendar

Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.

Executive Editor

surendar@mailtmc.com

Mumbai