NCLT clears Reliance Retail's takeover plan for Future Supply Chain

NCLT Mumbai approves Reliance Retail's resolution plan for Future Supply Chain, ensuring creditors' recovery and revival of the logistics firm on a going-concern basis

The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Reliance Retail Ventures Ltd (RRVL) for Future Supply Chain Solutions Ltd (FSCSL), marking another key acquisition of a Kishore Biyani-led Future Group company by the Reliance group. Reliance Retail Ventures Ltd (RRVL) is the holding company for Reliance Industries Ltd’s (RIL’s) retail operations, encompassing grocery, electronics, fashion, and pharma sectors.

 

A Bench comprising Judicial Member Lakshmi Gurung and Technical Member Hariharan V cleared the plan under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), observing that it complied with the requirements of Section 30(2) and had secured the Committee of Creditors’ (CoC’s) approval with an overwhelming majority. The tribunal, going by the view of the resolution professional (RP), approved the plan.

 

The RP submitted that the plan offered better realisation for creditors compared to liquidation and ensured the revival of FSCSL as a going concern. He also found that the proposal adhered to procedural and legal mandates, including fair treatment of all creditor classes and eligibility compliance under Section 29A.

 

“We have gone through the contents of the resolution plan submitted by M/s Reliance Retail Ventures Ltd during the Corporate Insolvency Resolution Process (insolvency process) of Future Supply Chain Solutions Ltd. It is compliant with the provisions of the Code and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, framed thereunder,” the RP submitted.

 

Under the plan, RRVL will acquire FSCSL’s assets and business operations on a going-concern basis. Financial creditors are expected to recover around 25–30 per cent of their admitted claims, while operational creditors will receive a smaller share in accordance with the Code’s distribution framework.

 

The Bench directed the resolution professional to transfer management and control of the company to RRVL and submit a compliance report post-implementation. It further extinguished all claims not forming part of the approved plan and extended statutory protection to RRVL under Sections 31 and 32A of the IBC.

 

Future Supply Chain, once one of India’s largest integrated logistics service providers catering to large retailers, was admitted to insolvency in January 2023 after defaulting on its financial obligations. The company’s downfall followed the collapse of the ₹24,713-crore asset sale deal between the Future Group and Reliance in 2022, which triggered insolvency proceedings across multiple group entities.

 

The insolvency process was initiated against FSCSL on January 5, 2023, on an application filed by DHL Ecommerce (India) Pvt Ltd under Section 9 of the Code. Rajan Rawat was appointed as interim resolution professional and later confirmed as RP.

 

The insolvency process was extended multiple times, with the latest extension granted on September 30, 2024.

 

The CoC, constituted on February 10, 2023, admitted total claims of ₹155.16 crore for financial creditors. The final resolution plan, submitted by RRVL, was approved with 91.76 per cent voting share after reconstitution of the CoC. The average fair value was ₹170.69 crore, and the liquidation value was ₹133.35 crore. The tribunal approved the resolution plan valued at ₹171.38 crore.