Insolvency Process Will Start In Future Retail, NCLT Approves

Insolvency process will start in Future Retail, NCLT approves. The road to insolvency process has now opened in Future Retail, which has been in legal trouble for a long time.

The National Company Law Tribunal (NCLT) on Wednesday approved a proposal to initiate insolvency proceedings against the company.

This application was made on behalf of the public sector bank of India, which gave a loan to the company.

The tribunal has also rejected the objection of American company Amazon against this application.

Insolvency process will start in Future Retail: There was a legal battle between Reliance Group and Amazon for nearly two years over the acquisition of Future Retail.

Accepting the proposal of the Bank of India, a division bench of Mumbai-based NCLT has allowed the initiation of the insolvency process under Section 7 of the Insolvency and Bankruptcy Code (IBC) and also appointed an officer to supervise and conduct the entire process.

In April 2022, the Bank of India filed a petition in the NCLT against Future Retail that it has not paid Rs 3,495 crore. Whereas this amount was already to be paid under the loan restructuring scheme.

Apart from the Bank of India, Future Retail, founded by famous industrialist Kishore Biyani, has not been able to repay the loans of some other borrowers.

Let us tell you that both the parties had reached an agreement to sell Future Retail to Reliance, but Amazon fought a long legal battle against it.

Then Reliance decided to buy all the Future Group companies for Rs 24,713 crore. Later, Reliance Group announced the cancellation of the agreement.

Rupee vs Dollar: Rupee closes below 80 for the first time against dollar.

The rupee on Wednesday closed below the 80 mark for the first time by falling 13 paise against the US currency on strong demand for the dollar from importers amid higher crude oil prices.

In the interbank foreign exchange market, the Indian currency opened at 79.91 and later fell to a low of 80.05 for a dollar. The rupee was trading in the range of 79.89 to 80.05 in the day’s trading.

It finally closed at the day’s low of 80.05, marking a fall of 13 paise over the previous trading session.