State-run lender Bank of India (BoI) on April 14 moved the National Company Law Tribunal (NCLT) against Future Retail for non-payment of dues.
“Please be informed that Bank of India 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,” Future Retail said in an exchange filing on April 14.
The company has received a copy of the petition and is in the process of taking legal advice, the filing showed.
Future Group is locked in a legal dispute with U.S.-retailer Amazon over its plan to sell its retail, wholesale, warehousing and logistics business to Reliance Industries in $3.4 billion deal.
Also read: Amazon has destroyed us, Future Retails tells Supreme Court
In 2019, Amazon invested $200 million in Future Coupons for a 49 percent stake, by virtue of which the U.S. company got a 7.3 percent foothold in Future Retail. Amazon, an investor in Future Group’s gift voucher unit Future Coupons, tried to block the deal by obtaining a freeze order from Singapore arbitration court.
The dispute resulted in a slew of cases across multiple Indian courts.
The legal dispute accelerated after Reliance Industries started taking over the assets of Future Retail, despite the matter being sub-judice. Future Retail which has more than 1,700 outlets, including the popular Big Bazaar stores -- has been unable to make lease payments for some of its outlets. Reliance bailed out Future Retail by transferring the leases of some stores to its name and subletting them to the group to operate.
Earlier this month, Future Retail had defaulted on interest payment of non-convertible debentures.
Some of Future Retail’s lenders include State Bank of India, Union Bank of India, Bank of India, Bank of Baroda, Indian Bank and IDBI Bank. Future Retail owes banks Rs 6,278 crore, Care Ratings said in January.
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