On this page
Bank of India declares Future Enterprises' ₹575.40 crore account a fraud and reports it to the RBI
Our read
Future Enterprises will more likely than not fight the fraud tag in a prolonged dispute, and other creditors will probably test their own exposure rather than ignore it.
For operators
Bank of India's fraud classification of Future Enterprises' ₹575.40 crore account shows lenders now treat the group's distress as a conduct issue, so retailers with supplier, landlord or partner ties to Future Group should review their exposure and payment terms.
Watch
A second lender tagging Future Enterprises as fraud before its next quarterly results would mean creditors are aligning against it and recoveries will be thinner.
The report,
Future Enterprises was among the Future Group companies due to go to Reliance Retail in a ₹24,713-crore deal that Reliance Industries called off in April. Bank of India, which disclosed the fraud on Monday, has already made provisions of ₹575.40 crore.
- Account declared fraud₹575.40 crore
- Provisions already made₹575.40 crore
Reported figures
From the report. Source details below
| Future Group companies in the deal: | 19 |
|---|
What to watch next
- Any court or tribunal stay on the classification
- Bank of India's disclosure of recoveries or write-backs against the account
- Referral of the case to a central investigating agency
- Other lenders' provisioning disclosures on Future Group exposure