Kishore Biyani Resigns As Future Retail Chairman
Kishore Biyani's resignation letter will be placed before the Committee of Creditors.
Kishore Biyani tendered his resignation from the position of executive chairman and director of Future Retail Ltd. earlier this week.
Future Retail is undergoing insolvency resolution proceedings on a plea from the Bank of India, admitted by the National Company Law Tribunal. Vijaykumar V. Iyer of Deloitte India Insolvency Professionals LLP was appointed the insolvency resolution professional, with powers of the board vested in him.
Biyani, the founder of Future Group, submitted his letter of resignation from the top position in Future Retail on Jan. 23, the company informed exchanges on Wednesday. The same was received by Iyer on Jan. 24.
"The resignation letter of Kishore Biyani shall be placed before the committee of creditors, as per the Insolvency and Bankruptcy Code, 2016, read with rules and regulations framed thereunder," Future Retail said.
"Nothing herein should be construed as an acceptance of the contents of the resignation letter tendered by Kishore Biyani, including in respect of his submissions in the resignation letter on information handover," it said.
In his resignation letter, as shared by Future Retail with the exchanges, Biyani highlighted that he has been the executive chairman of Future Retail even after the initiation of corporate insolvency resolution proceedings and the subsequent suspension of the board.
"As I understand, I have completed all the required handholding within my capacity for you to takeover the entire control of the company and its assets and I have also completed handover of whatever information and data... While the company was always my passion and I have done everything in my power for its growth, I have to accept reality and move on," Biyani wrote.
Future Retail was one of the 19 companies operating in the retail, wholesale, logistics, and warehousing segments that were to be handed over to Reliance Retail as part of a Rs 24,713 crore deal announced in August 2020. After an arduous legal battle between Future and Amazon.com Inc. over it, the deal was ultimately called off by Reliance Industries Ltd. in April.
Future Retail then defaulted on several payment commitments, which then led to insolvency proceedings being initiated against it.