Reliance Retail Secures NCLT Approval for Future Supply Chain Takeover

Reliance Retail Ventures Ltd (RRVL) has received approval from the Mumbai Bench of the National Company Law Tribunal (NCLT) for its resolution plan for Future Supply Chain Solutions Ltd (FSCSL), strengthening Reliance’s foothold in the logistics sector. 

This move represents another major acquisition from the Kishore Biyani-led Future Group, further enhancing RRVL’s presence in India’s retail infrastructure network.

NCLT Approval and Key Financial Details

The NCLT bench, comprising Judicial Member Lakshmi Gurung and Technical Member Hariharan V, cleared RRVL’s resolution plan under Section 31(1) of the Insolvency and Bankruptcy Code (IBC), 2016. The tribunal noted that the proposal met all requirements under Section 30(2) and secured overwhelming approval from the Committee of Creditors (CoC), with 91.76% voting in favour. 

The ₹171.38 crore plan values FSCSL marginally above its fair value of ₹170.69 crore and significantly higher than its liquidation value of ₹133.35 crore. Financial creditors are expected to recover between 25–30% of their admitted claims, while operational creditors will receive smaller allocations in line with the Code’s framework.

Resolution Professional’s Observations and Tribunal Directions

Resolution Professional (RP) Rajan Rawat confirmed that RRVL’s proposal ensured a stronger recovery for creditors and a sustainable revival for FSCSL. He stated, “The plan offered better realisation for creditors compared to liquidation and ensured the revival of FSCSL as a going concern.”

Following the approval, the tribunal instructed the RP to transfer FSCSL’s management and control to RRVL, submit a post-implementation compliance report, and extinguish all claims not covered under the plan. RRVL was also granted statutory protection under Sections 31 and 32A of the IBC.

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Conclusion

The NCLT’s approval of RRVL’s ₹171.38 crore plan for Future Supply Chain marks a pivotal step in Reliance’s retail growth strategy while ensuring creditor recovery and business continuity for one of India’s erstwhile logistics leaders.

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