New Delhi: American e-tailer Amazon has urged reserve Bank of India to conduct a forensic audit of Future Retail ,FRL) alleging for the last three financial years that the promoters and directors of the Big Bazaar parent Reliance About 800 stores occupied by the debt-ridden company
The 14-page letter that TOI has reviewed comes in the wake of the Rs 25,000-crore Reliance-Future deal that led to a majority voting of FRL’s secured creditors against the proposed transaction.
Kishor Biyani-led FRL, which owes around Rs 18,500 crore to its creditors, is currently looking at bankruptcy, with its largest creditor Bank of India (BoI) filing an insolvency petition against the retailer.
It is up to RBI to conduct a thorough investigation into the frauds committed by FRL, its promoters, directors and KMPs,” Amazon wrote in the letter. Forensic audit to be conducted as RBI has to inter alia know about RBI fraud circulars, financial documents and framework agreement,
FRL and RIL have not commented at the time of this story. Amazon, which is fighting a bitter legal battle with FRL to stall the Reliance-Future deal, alleged that there is collusion between FRL’s lenders, Reliance.
ance and the promoters of FRL were designed to bypass the injunction against such a deal and reduce the value of FRL. Alleging that FRL voluntarily handed over the stores to RIL, Amazon claimed that the lender bank “failed to take cognizance, let alone prevent FRL and MDA Group (Mukesh Dhirubhai Ambani Group) from committing fraud”.
“The conduct and attitude of the lending banks raises considerable questions about the accountability, transparency and fairness regime in the banking system. Instead of taking stern action, the lending banks have instead given a relief to Biyani by taking FRL into bankruptcy…,” Amazon wrote.
Amazon’s legal battle began nearly two years ago after the proposed Future-Reliance deal was announced, when the e-tailer dragged FRL to a Singapore-based emergency arbitrator.
The 14-page letter that TOI has reviewed comes in the wake of the Rs 25,000-crore Reliance-Future deal that led to a majority voting of FRL’s secured creditors against the proposed transaction.
Kishor Biyani-led FRL, which owes around Rs 18,500 crore to its creditors, is currently looking at bankruptcy, with its largest creditor Bank of India (BoI) filing an insolvency petition against the retailer.
It is up to RBI to conduct a thorough investigation into the frauds committed by FRL, its promoters, directors and KMPs,” Amazon wrote in the letter. Forensic audit to be conducted as RBI has to inter alia know about RBI fraud circulars, financial documents and framework agreement,
FRL and RIL have not commented at the time of this story. Amazon, which is fighting a bitter legal battle with FRL to stall the Reliance-Future deal, alleged that there is collusion between FRL’s lenders, Reliance.
ance and the promoters of FRL were designed to bypass the injunction against such a deal and reduce the value of FRL. Alleging that FRL voluntarily handed over the stores to RIL, Amazon claimed that the lender bank “failed to take cognizance, let alone prevent FRL and MDA Group (Mukesh Dhirubhai Ambani Group) from committing fraud”.
“The conduct and attitude of the lending banks raises considerable questions about the accountability, transparency and fairness regime in the banking system. Instead of taking stern action, the lending banks have instead given a relief to Biyani by taking FRL into bankruptcy…,” Amazon wrote.
Amazon’s legal battle began nearly two years ago after the proposed Future-Reliance deal was announced, when the e-tailer dragged FRL to a Singapore-based emergency arbitrator.