Kishore Biyani has resigned from the suspended board Future Retail He has resigned as Chairman and Director of the company, which is currently insolvency proceedings before NCLT.
In His final farewell is emotional Kishore BiyaniWho was associated with? Future Retail Ltd (FRL) Since 2007, when it was founded, it stated that it was currently facing CIRPCorporate Insolvency Resolution Process) as a “result of unfortunate business situation”.
“While the company was always my passion and I have done everything in my power for its growth, I have to accept reality and move on,” Kishore Biyani In his resignation letter to resolution professionals of the company.
The The letter contained the following: “As I understand, I have completed all the required handholding within my capacity for you to take over the entire control of the company and its assets and I have also completed the handover of whatever information and data, which was available with the earlier management or which could be retrieved from ex-employees or third parties and have shared with you all the insight about the business and operations and various hurdles faced by the earlier management.”
FRL stated that in a regulatory file Kishore Biyani It has “tendered a letter of his resignation from the position of the “Executive Chairman Director” of the company. His resignation “shall be placed before Committee Of CreditorsAccording to the Insolvency Bankruptcy Code, 2016”, the company added.
The resolution professional of Future Retail Ltd (FRL) has received intimation through an e-mail on January 24, 2023.
Kishore Biyani, who was also known as a retail tsar in India, is known as the pioneer of modern retail in India, who took the modern brick & mortar format among the masses. FRL operated multiple retail formats in both the hypermarket supermarket and home segments under brands such as Big Bazaar, Easyday, Foodhall. At its peak, FRL was operating over 1,500 outlets in nearly 430 cities.
Kishore Biyani (61) has also assured to cooperate with the lenders.
“Needless To say that, in spite of my resignation I would be available to help with any problem related to the company.” he said.
FRL was dragged into insolvency proceedings by its lender Bank of India after it defaulted on loans.
The Mumbai bench of the National Company Law Tribunal had on July 2022 directed to initiate insolvency against FRL.
It was part of the 19 Future group companies operating in the retail, wholesale, logistic and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
However, lenders had rejected the takeover of the 19 Future group companies, including FRL, by Reliance amid a legal challenge by Amazon.
As many as 13 companies including Reliance Retail, Adani Group’s JV April Moon Retail and 11 other companies have made it to the final list of prospective bidders for acquiring FRL.
Last year in August, stock market regulator Sebi had ordered a forensic audit of the accounts of FRL for the financial years 2019-20, 2020-21 and 2021-22.
The Securities and Exchange Board of India (Sebi) has also asked for an audit of FRL’s Related Party Transactions (RPT) with three other Future group firms — Future Enterprises Ltd, Future Consumer Ltd and Future Supply Chain Solutions Ltd.
RPT refers to a deal or arrangement made between two parties related to each other by having a pre-existing business relation or common interest.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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