Bain Capital has approached the Delhi High Court asking it to make public a court-appointed auditing report of Lilliput Kidswear even as the private equity firm is seeking judicial order restraining Lilliput?s founder Sanjeev Narula from threatening and intimidating the the investors? representatives and lawyers.
Late last year, Bain?s unit BC India Private Investors along with Lilliput?s other investor TPG Capital had dragged the retailer to the Delhi court alleging the management of widespread doctoring of Lilliput?s books. On the other hand, Lilliput is alleging that the private equity players, that collectively hold 45% of the company?s stake, of interfering in the day-to-day management of the retailer.
The spat erupted as the retailer was planning to raise R850 crore in a public offer. The wrangling between the promoters and the investors has crippled the retailer as it is currently struggling to raise working capital as banks have refused to disburse further loans to Lilliput following a downgrading by rating agency Icra.
Currently, Lilliput is facing winding up petitions from lenders Tata Capital and Taiwan-based China Trust Commercial Bank as well as from a vendor.
In November, the court-appointed auditor SS Kothari Mehta & Co submitted its interim report mid-February and in that report the audit firm has spelled out its inability to compete the auditing due to Lilliput?s non-cooperative attitude alleging the retailer has instructed the banker ICICI Bank not to part with information directly to the auditors.