Future Retail directors caused Rs 14,809 cr loss to creditors: Resolution Professional TO NCLT

Debt-ridden Future Retail Ltd, which is facing insolvency proceedings, on Friday said its resolution professional has filed an application before the National Company Law Tribunal against the former and present directors of the company for causing a loss of Rs 14,809.44 crore to creditors.

In the application filed before the Mumbai bench of the NCLT, the Resolution Professional (RP) has sought direction from the tribunal against the present and erstwhile directors of FRL "to contribute the amount to the company", Future Retail Ltd (FRL) said in a regulatory filing.

"As on the date of filing of the said application, basis the limited information available, the RP has quantified the potential loss that has been caused to the creditors of FRL to be Rs 14,809.44 crore, and has sought a direction against the respondents to the said application to contribute the such amount to FRL," the company added.

The RP of FRL has filed an application before the NCLT Mumbai against directors/ erstwhile directors of the company under the Insolvency & Bankruptcy Code 2016, it 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 on July 2022 directed to initiate insolvency against FRL.  In January, its promoter Kishore Biyani stepped down from the suspended board of FRL and resigned as Chairman and director of the company.