'Uncertainty over Reliance Industries deal drove FRL lenders to IBC'

Protracted litigation, safeguarding bankers' interest also led to the action

While lenders were preparing for taking Future Retail (FRL) to the bankruptcy court, the protracted litigation and uncertainty on a deal with Reliance Industries nudged them into immediate action under the Insolvency and Bankruptcy Code (IBC).

The next steps include approaching the Debt Recovery Tribunal (DRT) and examining prospects to invoke guarantees. A senior banker with a public sector bank said going to National Company Law Tribunal (NCLT) was the last option. The legal process — Amazon-Future issues — continues to drag.

There was some expectation of Reliance taking initiative for a way out but there was hardly any movement forward. Banks