NCLT admits Kishore Biyani’s Future Retail for liquidation 

Kishore Biyani-promoted Future Retail has been admitted by the National Company Law Tribunal (NCLT) Mumbai branch for liquidation. This comes due to the absence of any viable revival plan for the company. 

According to a report in The Economic Times, Sanjay Gupta has been appointed as the company’s liquidator. The division bench allowed the company’s resolution professional Vijaykumar V Iyer’s application to admit the company for liquidation. The bench observed that the maximum period of Corporate Insolvency Resolution Process (CIRP) has expired and no resolution plan has yet been approved by the committee of creditors (CoC). 

The retailer has liabilities of over Rs 28,452 crore, including financial creditors’ claims of Rs 14,422 crore. 

“We are of the considered opinion that this is a fit case for liquidation. To maximise the value of the Corporate Debtor, the Liquidator shall endeavour the sale of the Corporate Debtor as a going concern under Regulation 32A clause (e) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016,” said the tribunal in its order, as mentioned in the report.

The company’s resolution professional had informed the stock exchanges last year in November that the resolution plan for Future Retail has been rejected, thereby admitting the company for liquidation. 

Future Group that had taken a beating during the COVID-19 pandemic, failed to complete the Rs 24,713-crore deal with Reliance Industries in April 2022. The lenders voted against the scheme of arrangement.