![Future Retail executive chairman Kishore Biyani withdraws resignation letter](https://img.etimg.com/thumb/msid-102927112,width-210,height-158,imgsize-61092,resizemode-75/future-retail-executive-chairman-kishore-biyani-withdraws-resignation-letter.jpg)
This has resulted in a conflict of interest, according to a petition filed by Biyani. A division bench of the Bombay HC on August 11 ruled that neither Dixit nor GD Apte & Co should undertake the forensic auditor's role for FLFL. Lenders are now preparing to appoint another forensic auditor to expedite the sale of the company under corporate insolvency. "Thus, it is a setback since a year is lost waiting for the report," a senior bank official said.
![Future Lifestyle Resolution Hits a Bump over Forensic Auditor’s Role. Future Lifestyle Resolution Hits a Bump over Forensic Auditor’s Role.](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
"Although the RP can proceed with the sale process, the extent of recovery will be known after a forensic report is tabled before lenders for review," the banker said. Forensic audit helps lenders gauge if promoter has undertaken any preferential or fraudulent transactions that can be clawed back. Lenders plan to seek an explanation from GD Apte & Co as to why it did not disclose the assignment undertaken by a Future Group company. "Lenders may consider not giving new assignments to firms that do not disclose conflict of interest," said the lender cited above.
GD Apte & Co in response to ET query claimed they have "suo-moto declined the assignment as forensic auditors of FLFL" and denied any conflict of interest. "Thus, there arises no question of withholding any such data from the lenders."
State Bank of India (SBI) had appointed GD Apte & Co to carry out a forensic audit of Future Consumer, according to a disclosure made by the company to exchanges on May 23. Lenders of Future Consumer may ask them to resign as forensic auditor due to a conflict of interest.
KPMG-backed resolution professional Ravi Sethia has admitted ₹2,117 crore claims from financial creditors against FLFL, according to disclosures made by the RP. The highest claim is from SBI at ₹467 crore.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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