Business & Finance

Delhi High Court Orders Biyani Brothers to Disclose Assets Amid ₹800‑Crore Recovery Effort

By Krishna Yadav

The Delhi High Court has asked promoters Kishore Biyani and his brother Rakesh Biyani to provide details of their assets as lenders seek to recover almost ₹800 crore linked to personal guarantees on loans to Future Group companies. On Friday, a bench headed by Justice Vinod Kumar issued notices to the brothers and directed them to file affidavits revealing bank accounts, shareholdings and other assets within a week. The court will hear the matter again on 19 November. The petitions were filed by Catalyst Trusteeship Ltd and Phoenix ARC Ltd under Section 9 of the Arbitration and Conciliation Act, 1996. Lenders have asked the promoters to disclose assets, furnish security for the outstanding amounts and refrain from selling or transferring assets that could affect recovery. They also seek details of personal and beneficial assets, including bank accounts, investments, securities and interests in companies and limited liability partnerships. The lenders fear that assets could be transferred before their claims are resolved.

The dispute involving Kishore Biyani dates back to December 2017, when L&T Finance extended loans totaling ₹375 crore to Future Entertainment Pvt Ltd, backed by his personal guarantee. After the Covid‑19 pandemic hit the company’s business, the loans were restructured in June 2021 to about ₹262.2 crore, with Biyani providing a fresh personal guarantee. The lenders allege that a promised investment of ₹250 crore by Future Brands Ltd in Future Entertainment was never made and that insolvency proceedings against another Future Group company triggered a default under the loan agreement. After Future Entertainment failed to pay ₹20.44 crore in March 2022, its loan account was classified as a non‑performing asset in May that year. L&T Finance subsequently transferred the loan and related rights to Phoenix ARC. In August 2026, Catalyst invoked Biyani’s personal guarantee and demanded around ₹600 crore, including interest and other dues, which it claims remains unpaid.

The second petition concerns a separate ₹200 crore loan facility extended to Kaa Vee Retail Infra Pvt Ltd in 2017. Phoenix ARC claims that nearly ₹200 crore remains outstanding and has approached the court seeking interim protection in connection with the personal guarantees.

In one of the petitions, lenders allege that Kishore Biyani continues to be commercially active despite the outstanding dues under his personal guarantee. They point to his association with asset‑backed LLPs such as KLB Advisory and KLB Capital Advisors, as well as his reported roles as a mentor, adviser and incubator of new ventures and consumer brands, including The Foundery, Foodstories and Broadway. The lenders contend that these business associations could facilitate the movement of wealth and assets through start‑ups and other entities, making recovery of their dues difficult.

The lenders are seeking around ₹600 crore in one case and ₹200 crore in the other, taking their combined claims to nearly ₹800 crore.

The cases come against the backdrop of mounting debt and financial difficulties across the Future Group, once one of India’s largest organised retail businesses. Founded by Kishore Biyani, the Mumbai‑based group built a nationwide presence through retail chains and brands such as Big Bazaar, Food Bazaar, Pantaloons, Central and Brand Factory. It also expanded into fashion, food, logistics and consumer goods. The group’s rapid expansion through acquisitions, new retail formats and investments was accompanied by rising debt. By September 2019, the combined debt of its listed companies had increased to ₹12,778 crore from ₹10,951 crore in March that year. Financial pressures intensified during the Covid‑19 pandemic, when restrictions on store operations hurt retail sales and cash flows. In August 2020, Future Group announced a ₹24,713 crore deal to sell its retail, wholesale, logistics and warehousing businesses to Reliance Retail. The proposed transaction was expected to help the group pare debt and address its financial difficulties. However, the deal fell through in 2022, leaving several group companies struggling to meet their repayment obligations. Future Retail and other group entities subsequently faced insolvency proceedings initiated by creditors, marking a major setback for the retail empire built by Biyani. Emails sent to Catalyst Trusteeship Ltd, Phoenix ARC Ltd, Future Entertainment Pvt Ltd and Kishore Biyani seeking their comments remained unanswered till press time.