Public sector lender Central Bank of India has filed a personal insolvency case against promoters of the debt-laden retail conglomerate Future Group, The Economic Times reported on September 5.
The bank has filed a case against promoter Kishore Biyani, his elder brother Vijay Biyani and cousin Sunil Biyani with total claims of Rs 1,047 crore, as per the report.
All three had given personal guarantees for loans applied by subsidiaries Iskrupa Mall Management, Syntex Trading and Agency and Unique Malls, it said.
The report further disclosed that Kishore and Vijay Biyani have each given a guarantee totalling Rs 513 crore while Sunil Biyani has given a guarantee of Rs 21 crore.
According to the report, the claims were in the Mumbai bench of the National Company Law Tribunal (NCLT) a few days ago and are yet to be admitted by the court.
Moneycontrol could not independently verify the report.
Central Bank is the lead lender to Future Enterprises (FEL) which owes lenders and bondholders a total of Rs 6,778 crore. The total outstanding debt against the group is over 28,000 crore.
Last week, the Bank of India filed a petition before the National Company Law Tribunal (NCLT), to initiate insolvency proceedings against debt-ridden Future Lifestyle Fashions Ltd (FLFL).
Under section 7 of the IBC, the financial creditor of the company, which includes banks and financial institutions, can file a plea before the NCLT to initiate a corporate insolvency resolution process (CIRP) claiming a default.
The NCLT has already initiated CIRP against Future Retail Ltd on July 20. Future Enterprises Ltd is also facing two petitions by its creditors to initiate insolvency proceedings against the company.
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