Future Retail Insolvency: Landlords Want Their Properties Back

Landlords of shops occupied by Future Retail Ltd. are getting restless about the perishable goods stocked in their properties. Several of them have approached the insolvency court, asking it to restore possession to them at the earliest.

According to the landlords, after Future Retail went into insolvency, most of the shops occupied by the company were closed and left without any maintenance, resulting in the spoilage of perishable goods stored on these premises.

Due to the moratorium, they were unable to get access to these properties. A lot of the stock belonging to Future Retail, including several perishable goods, is still stored on these premises. These goods, besides posing a threat of permanent damage to the properties, could also be a health hazard, they said.

The counsel for Vijayakumar Iyer, the resolution professional, has informed the court that the issue will be sorted out once the committee of creditors sits on it.

According to Iyer, a resolution is under consideration, and the CoC will soon decide which shops the company intends to retain to continue as a going concern. The voting will come to an end on May 12.

As per insolvency law, if the company decides to retain any of the properties, it would be expected to pay for rent and utilities availed during the resolution period.

Future Retail, one of India's leading multi-format retailers, went into insolvency in July 2022 following a loan default. Recently, the National Company Law Tribunal granted a 90-day extension till July 15 for the insolvency process.

Forty-nine companies, including Reliance Retail Ltd., Jindal Power Ltd., and Adani Group, have submitted an expression of interest for Future Retail.