Kishore Biyani moves HC against BDO forensic audit of Future Retail
Erstwhile promoter of Future Retail Kishore Biyani has filed a writ petition before Bombay High Court challenging the Forensic Audit process including the Forensic Audit Report dated 9 August 2023 submitted to Bank of India by BDO India LLP, the company informed in an exchange filing.
The company had earlier informed the exchanges that Bank of India (BOI) had written a letter seeking representation from the Future Retail, Kishore Biyani (Promoter, director and guarantor) and Rakesh Biyani (Promoter and erstwhile Director) on Forensic Audit Report dated 09 August 2023 submitted to BOI by BDO India LLP (Forensic Auditor appointed by BOI), and a response submitted by the Resolution Professional for and on behalf of the Company respectively.
Responding to a letter, resolution professional Vijaykumar V Iyer had argued that on account of the prevailing moratorium, there exists a prohibition on the institution or continuation of any suits/ proceedings against the Corporate Debtor (Future Retail), including the execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority.
Accordingly, he said, no proceedings in relation to classifying the loan accounts of the Corporate Debtor as fraudulent, including any consequences of such classification, may be undertaken by the Bank during the subsistence of the prevailing moratorium.
Iyer had further argued that the forensic audit report annexed by the Bank (BoI) as part of the Letter, appears to be in respect of transactions which were carried out between 1 April 2017 and 30 April 2022, which is prior to the date of initiation of CIRP in respect of the Corporate Debtor.
“Accordingly, as the period covered under the said report is prior to commencement of CIRP of the Corporate Debtor and as such, much prior to appointment of the undersigned as RP and the RP has been constrained to rely on the support of the Company personnel in procuring details of documents and information of the Company and the business transactions of the Company prior to the ICD. Please further note that these details/information/documents are not available with the Company as the suspended management has not provided this information,” wrote the RP in response to the Bank of India letter.
It must be mentioned here that SpaceMantra has emerged as the only bidder interested in taking over all the assets of Future Retail, which is undergoing Corporate Insolvency Resolution Process since 20 June 2022. Bank of India had initiated insolvency resolution process against Future Retail for defaulting on a payment of Rs 856 crore.
Also Read: Reliance, Adani Group out of race for Future Retail
