Future Group founder Kishore Biyani, who had stepped down as the executive chairman and director of debt-strapped Future Retail (FRL), has withdrawn his resignation following objections by the resolution professional (RP).
Biyani had tendered his resignation on January 23. In a letter dated February 1, the resolution professional had objected to the resignation and requested him to withdraw it, FRL said in a regulatory update.
Biyani’s resignation was subject to the approval of FRL’s committee of creditors (CoC).
According to some media reports on Wednesday, All India Garment Manufacturers & Vendors Association has sought a payment of `200 crore pending since 2019 from Biyani. The association, comprising 350 members from Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Punjab, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Kerala, also warned Biyani of legal action if he fails to clear their dues.
The dues were incurred following supply of garments to Biyani’s group of companies between 2019 and 2022, it said.
Earlier on March 11, FRL’s resolution professional filed an application before the National Company Law Tribunal (NCLT) against the former and current directors of the company for causing a loss of `14,809.44 crore to creditors.
In his plea filed under the Insolvency & Bankruptcy Code 2016, the resolution professional had sought a direction from the tribunal against the directors.
FRL is currently undergoing a corporate insolvency resolution process vide an order dated July 20, 2022, passed by the NCLT’s Mumbai bench. The tribunal had also appointed Vijaykumar Iyer as the resolution professional for FRL.
In a letter dated February 15, corporate governance advisory firm InGovern Research Services had sought an urgent intervention of the regulators — RBI
The letter was sent to RBI and Sebi.