Kishore Biyani's business empire continues to crumble, with yet another company filing for insolvency. After Future Retail, now Future Enterprise has also been admitted for insolvency resolution. The development comes mere weeks after the National Company Law Tribunal admitted an insolvency plea against the Biyani-backed Future Supply Chain Solutions.
The Mumbai bench of the NCLT has ordered the “ordered the commencement of corporate insolvency resolution process”. The firm will now be auctioned in order to recover unpaid dues. The NCLT appointed a resolution professional to manage the affairs of the company till it is sold to a successful bidder.
The initiation of CIRP also means that the the powers of the board of directors have been suspended. Company management responsibilities now lie with the resolution professional.
The insolvency order was passed on the basis of a petition filed by Foresight Innovations Pvt Ltd. The New Delhi-based supplier claims that Future Enterprises had defaulted on a payment of ₹1.58 crore. Another operational creditor - Retail Detailz India - had also filed a similar petition claiming a default of ₹4.02 crore.
Future Enterprises was one of the 19 companies that were supposed to be transferred to Reliance Retail as part of a ₹24,713-crore deal. The deal - announced in August 2020 - was called off by billionaire Mukesh Ambani-led Reliance Industries Ltd in April last year.
(With inputs from agencies)
