Lenders Opt for Forensic Audit of Future Retail

Lenders led by Bank of India have appointed BDO India to conduct a forensic audit of Future Retail, which is facing insolvency proceedings, the Economic Times of India reported. Kishore Biyani-led Future Retail had attempted to stave off bankruptcy by selling its companies to Reliance Industries' retail unit. Creditors did not approve the deal and the company was admitted to the National Company Law Tribunal for insolvency proceedings after it defaulted on ₹3,495 crore debt. Market regulator Securities and Exchange Board of India too has last week appointed chartered accountants Chokshi & Chokshi to conduct a forensic audit of Future Retail. Lenders say that they wanted an independent assessment of the loan account since they would not have access to the Sebi report. Secondly, the finance ministry has mandated lenders to conduct a forensic audit of non-performing loan accounts where the exposure is over ₹50 crore, said a lender. Read more.