InvestorQ : Do you see the SEBI forensic audit into the books of FRL yielding any positive results?
Anjana Aiyar made post

Do you see the SEBI forensic audit into the books of FRL yielding any positive results?

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Khushi Patel answered.
2 months ago
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SEBI recently appointed Chokshi & Chokshi as the forensic audit to delve into the books of accounts of Future Retail and other group companies for FY19, FY20 and FY21. The mandate is to bring to light any major inter group transaction with FRL with the possibility of siphoned money out of the group. SEBI wants to be sure, through the forensic audit whether FRL and group units acted against the interests of the investors. The question is; what is expected to come out of the audit. Actually nothing; as FRL is a case of chance lost.

Actually, timely intervention more than anything else, could have helped in the FRL case. The banks rejected the RRVL proposal which actually gave an exit to Reliance Retail Ventures closing all doors for any recovery. FRL is already a shell company with no operations. In the Amazon case, court could have allowed the deal with RRVL to continue giving Amazon options to proceed. Amazon just succeeded in nixing the deal and closing doors for banks to recover anything. It is hard to fathom what the forensic audit can achieve.

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