Two Independent Directors Of Future Enterprises Quit Citing Increased Workload

Future Retail has said it had missed the due date for repayment of Rs 5,322.32 crore to lenders on account of the ongoing litigation with US e-commerce major Amazon and other related issues

Future Enterprises to sell 19 companies operating in retail, wholesale, logistics, and warehousing segments to Reliance Retail Ventures. Image: Getty

New Delhi: Amid raging controversy, Anand Chandrasekaran and Malini Chopra, two independent directors of Future Enterprises have resigned from the board of the company on Monday.

In a regulatory filing, the debt-ridden company said that the resignations of the two board members were effective from Monday.

In a report by the PTI, both Chandrasekaran and Chopra have cited an increase in workload as among the reasons for their resignations. The resignation of the two independent directors comes days after Future Enterprises defaulted on a payment of Rs 2,835.65 crore to various banks and lenders.

Quoting Chandrasekaran, the PTI said, “It (resignation) was due to increase of workload in recent role. I would not be in a position to devote time for discharging my responsibilities as independent director of the company.”

Chopra said, “Due to the heavy workload in my other professional ventures and my inability to devote reasonable time and effort in discharging my duties towards Future Enterprises as an independent director.”

Rakesh Biyani-led companies are still at legal loggerheads with US e-commerce major Amazon. 

Future Retail, the group’s leading firm, on Friday said it had missed the due date for repayment of Rs 5,322.32 crore to lenders becasue of the ongoing litigation with Amazon and other related issues.

Several companies of Future Group, including Future Enterprises, have entered into agreements with their respective lenders regarding a RBI circular dated August 6, 2020 in which a resolution framework for Covid-related stress was announced.

Previously, Reliance Industries in a letter defended its move of abruptly taking over the stores of debt-laden Future Retail.

In the letter, the conglomerate said that mounting dues of $634 million compelled it to act beyond expectations. As of now, RIL had taken over the leases of more than 900 of Future’s 1,500 stores over months, while still allowing the company to operate them.

Future Enterprises is part of the Rs 24,713-crore deal announced by Future Group in August 2020. It is to sell 19 companies operating in retail, wholesale, logistics, and warehousing segments to Reliance Retail Ventures.

All 19 companies would be consolidated into one entity, Future Enterprises, and then transferred to Reliance Retail Ventures.

Future Group companies will be conducting meetings with their respective shareholders and creditors between April 20 and April 23 to seek their approval for the Rs 24,713-crore deal.