Kishore Biyani, the promoter of Future Group, recently finalized the repayment of Rs 571 crore owed to lenders of Bansi Mall Management Company by offering a one-time settlement of Rs 476 crore, a significant portion of the total debt. The successful settlement, confirmed to be 83% of the creditors' dues, was made possible with the assistance of K Raheja Corp., a renowned real estate developer. This financial arrangement culminated in the acquisition of SOBO Central Mall, originally known as Crossroads and hailed as India's pioneering mall that debuted in the late 1990s.
Reports indicate that Biyani's settlement proposal came about after the approval of a competing bid of Rs 475 crore from the Runwal Group for the ownership of the SOBO Central Mall. It was revealed that the creditors, led by Canara Bank, had put the property up for sale to recover the outstanding debts owed to them. The acquisition of the mall, boasting a leasable area of close to 150,000 sq ft, was swiftly followed by the payment of substantial stamp duty amounting to Rs 28.56 crore during the registration process, according to insights gleaned from documents made available through Propstack.
Moreover, SOBO Central Mall, which was inaugurated in 1999, currently accommodates only a McDonald's outlet within its premises. The mall encountered formidable challenges attributed to the adverse effects of the COVID-19 pandemic, heightened competition from emerging retail developments within the city, and the considerable allocation of space to various entities under the embattled Future Group, which were grappling with their own financial woes. The financial irregularities stemming from Bansi Mall Management Company's default ultimately prompted the creditors to initiate legal proceedings in compliance with the provisions delineated in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.