Future Enterprises faces second plea to initiate insolvency

Debt-ridden is now facing a second insolvency plea filed by an operational creditor before National Company Law Tribunal.

The latest petition was filed by Retail Detailz India, claiming default of Rs 4.02 crore before the Mumbai bench of the NCLT.

"The Company has received e-filing confirmation from NCLT with respect to the filing of an application by an Operational Creditor Retail Detailz India Private under section 9 of the IBC for an alleged default amount of Rs 4.02 crore," Future Enterprises said in a filing.

No further date has been allotted so far for hearing the said application, it added.

NCLT has already initiated insolvency proceedings against Future Group's flagship firm .

Last week, another operational creditor, Foresight Innovations, had filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016, for an alleged default amount of Rs 1.58 crore before the Mumbai bench of NCLT.

The next date of hearing of this petition is August 26, 2022.

Section 9 of the IBC gives power to operational creditors of a company to initiate a corporate insolvency resolution process in case of a default.

Future Enterprises was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments which were supposed to be transferred to Retail as part of a Rs 24,713-crore deal announced in August 2020.

The deal was called off by Reliance in April.

With agency inputs