Future Group's Biyani brothers face lenders' ₹800 crore recovery push

Catalyst Trusteeship and Phoenix ARC have approached the court over unpaid loans to two Future Group companies.

The Delhi High Court has sought details of assets held by Future Group promoters Kishore Biyani and his brother Rakesh Biyani as lenders move to recover nearly ₹800 crore in dues linked to personal guarantees given for loans to group companies.

A bench of Justice Vinod Kumar on Friday issued notices to the brothers and directed them to file affidavits disclosing their assets, including bank accounts and shareholdings, within a week. The court will hear the matter next on 19 November.

The petitions have been filed by Catalyst Trusteeship Ltd and Phoenix ARC Ltd under Section 9 of the Arbitration and Conciliation Act, 1996. The lenders have sought directions requiring the promoters to disclose their assets and financial interests, furnish security for the outstanding amounts and refrain from selling or transferring assets that could affect recovery.

They have also sought details of the brothers' personal and beneficial assets, including bank accounts, investments, securities and interests in companies and limited liability partnerships (LLPs). The lenders have expressed concerns that assets could be transferred or disposed of before their claims are resolved.

The dispute involving Kishore Biyani dates back to December 2017, when L&T Finance extended loans totalling ₹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 around ₹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. They also claim that insolvency proceedings against another Future Group company triggered a default under the loan agreement. After Future Entertainment failed to make a payment of ₹20.44 crore in March 2022, its loan account was classified as a non-performing asset (NPA) 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.

Second petition

The second petition relates to 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, the lenders have alleged that Kishore Biyani continues to be commercially active despite the outstanding dues under his personal guarantee. They have pointed 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 and networks could facilitate the movement of wealth and assets through start-ups and other entities, making recovery of their dues difficult.

They have argued that the borrowers failed to meet their repayment obligations and that the personal guarantees furnished by the promoters make them liable for the outstanding amounts. The lenders are seeking around ₹600 crore in one case and ₹200 crore in the other, taking their combined claims to nearly ₹800 crore.

Mounting debt

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.

About the Author

Krishna Yadav is a Senior Correspondent at Mint, based in New Delhi, and part of the corporate bureau. He joined the newsroom as a trainee in 2023 and quickly grew into his current role. He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.<br><br>With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. This ranges from explaining tax disputes—like whether coconut hair oil is edible—to writing on why celebrities are seeking personal rights protection. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.<br><br>Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Beyond legal reporting, he has written long-form pieces, including on-ground coverage of the 2024 general elections, capturing the scale and logistics of polling across India.<br><br>Outside work, he enjoys travelling, exploring new places, and reading about geopolitics and history.