Future Group’s Kishore Biyani settles debt by selling SOBO mall to K Raheja Corp

Kishore Biyani, the promoter of Future Group, has reportedly settled dues worth Rs 571 crore to lenders of Bansi Mall Management Company by making a one-time settlement of Rs 476 crore, representing 83% of the total dues. 

Last month it was reported that Biyani made an offer of Rs 476 crore as a one-time settlement of Rs 571-crore debt of Bansi Mall Management that owns SOBO Central Mall in Mumbai’s Haji Ali to a group of lenders led by Canara Bank. Biyani’s offer came after the creditors approved a Rs 475-crore bid from Runwal Group for the asset. Creditors led by Canara Bank had put the property on the block to recover their dues. 

The settlement was facilitated by realty developer K Raheja Corp., which acquired SOBO Central Mall, formerly known as Crossroads. K Raheja Corp. Real Estate, which is part of K Raheja Corp., bought the mall with leasable area of nearly 150,000 sq ft. The deal, which involved a stamp duty of Rs 28.56 crore, took place on Monday. 

The mall, inaugurated in 1999, faced challenges due to the impact of COVID-19 and competition from new retail developments. 

Last year, Jindal (India) emerged as the sole bidder for Kishore Biyani’s Future Enterprises Limited. 

The Corporate Insolvency Resolution Process against Future Retail was initiated following loan defaults in 2022, with the retail chain owing a total of Rs 12,265 crore to its creditors.