The National Company Law Tribunal (NCLT) on Wednesday upheld the Bank of India’s application for insolvency resolution proceedings against heavily indebted Future Retail Ltd (FRL). The tribunal rejected Amazon’s objection to opening insolvency proceedings against Future Retail. After receiving the money laundering application, the NCLT appointed Vijay Kumar Iyar with a professional resolution for FRL.
In April this year, the BoI adjourned the court to file a bankruptcy petition against the defaulting FRL. On May 12, Amazon filed for intervention under Section 65 of the Insolvency and Bankruptcy Code, which provides for penalties for fraudulent or willful initiation of proceedings. Amazon rejected the insolvency proposal, saying that the BoI was working with FRL and that any bankruptcy proceedings at this stage would jeopardize the company’s e-commerce rights.