Bank of India has dragged Future Retail to the bankruptcy court for non-payment of dues, a move that can impact the Rs 24,713-crore asset sale deal signed between the Kishore Biyani company and Reliance Industries Ltd.

 The insolvency proceeding has been filed at the National Company Law Tribunal (NCLT) under section 7 of the Insolvency and Bankruptcy Code, 2016. This is for default of non-payment of monies due in terms of the framework agreement entered into between Future Retail and the bank.

 Cash-strapped Future Retail has loan dues worth Rs 14,730.36 crore to various banks.

 Bank of India is the lead bank in the consortium of lenders to Future Retail. The other lenders include State Bank of India, Union Bank of India, Bank of Baroda, Axis Bank, Indian Bank, IDBI Bank, Central Bank of India and Punjab National Bank.

 Banks were taken by surprise when Reliance Industries took over 200 Future Retail stores following termination of sub-leases on these properties.

 Concerned about recovery of dues, Bank of India, on 14 March, issued a public notice that said anyone dealing with the assets of Future Retail could be subject to clawbacks available under the law including for “preferential transactions”, “undervalued transactions” and fraud.

 Mukesh Ambani’s Reliance Group and Jeff Bezos’s Amazon, are locked in a fight over Kishore Biyani’s companies.

 Out of the nearly Rs 30,000 crore debt exposure banks have to Future Group, Rs 14,730.36 crore of loans is to just Future Retail. Of this, Rs 3,754.43 crore is in the form of bonds.