NCLT Clears Reliance Retail’s ₹171 Cr Plan for Future Supply

NCLT Approves Reliance Retail’s ₹171 Crore Resolution Plan for Future Supply Chain Solutions

Tribunal clears Reliance’s takeover of Future Group’s logistics arm under Insolvency Code

Secured creditors back the plan; monitoring committee to oversee implementation

By Our Legal Reporter

New Delhi: October 23, 2025: The National Company Law Tribunal (NCLT), Mumbai Bench, has approved Reliance Retail Ventures Limited’s (RRVL) ₹171 crore resolution plan for Future Supply Chain Solutions Limited (FSCSL), the logistics arm of the debt-ridden Future Group.

The order, delivered by a Bench comprising Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer, marks another significant acquisition by Reliance from the troubled Future Group. The Tribunal also directed the constitution of a monitoring committee to ensure smooth implementation of the plan.

Background of the Case

The Corporate Insolvency Resolution Process (CIRP) against FSCSL was initiated on January 5, 2023, following a petition filed by DHL Ecommerce (India) Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.
Rajan Rawat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP).
FSCSL, once a key logistics player for the Future Group, faced mounting debts and operational challenges after the collapse of its parent company’s retail empire.
Reliance Retail submitted a resolution plan worth ₹171 crore, which was approved by the Committee of Creditors (CoC) with overwhelming support.

NCLT’s Observations

The Tribunal, while approving the plan, made several important observations:

Compliance with IBC: The resolution plan met the requirements of the Insolvency and Bankruptcy Code and the Insolvency and Bankruptcy Board of India (IBBI) Regulations, 2016.
Creditor Interests Protected: The plan ensures recovery for secured creditors and provides a revival path for the company.
Monitoring Committee: A committee will oversee the implementation of the plan and ensure compliance with the Tribunal’s directions.
Going Concern Basis: The approval allows FSCSL to continue operations as a going concern, safeguarding jobs and business continuity.

Significance of the Ruling

This approval is important for several reasons:

Revival of FSCSL: The takeover ensures that FSCSL, which provides supply chain and logistics services, will continue operations under Reliance’s management.
Strengthening Reliance’s Logistics Network: With this acquisition, Reliance Retail further consolidates its supply chain capabilities, crucial for its fast-growing retail and e-commerce businesses.
Creditor Recovery: The resolution plan provides financial recovery for lenders, who otherwise risked heavy losses.
Boost to Insolvency Framework: The case demonstrates the effectiveness of the IBC in resolving corporate distress and ensuring business continuity.

Industry Context

The acquisition comes at a time when India’s logistics sector is witnessing rapid growth, driven by e-commerce, retail expansion, and government initiatives like PM Gati Shakti.

Reliance Retail, already India’s largest retailer, has been aggressively expanding its logistics and warehousing infrastructure.
The acquisition of FSCSL will give Reliance access to warehouses, transport fleets, and technology platforms that were once central to Future Group’s retail operations.
Analysts believe this move will help Reliance compete more effectively with Amazon, Flipkart, and other e-commerce giants by strengthening last-mile delivery and supply chain efficiency.

Reactions to the Approval

Creditors: Secured lenders welcomed the decision, noting that the resolution plan ensures better recovery compared to liquidation.
Industry Experts: Analysts said the acquisition aligns with Reliance’s long-term strategy of building an integrated retail and logistics ecosystem.
Employees: The continuation of FSCSL as a going concern is expected to safeguard hundreds of jobs that were at risk.

Broader Implications

The ruling has wider implications for India’s corporate and retail landscape:

Future Group’s Decline: The approval marks another chapter in the dismantling of Kishore Biyani’s Future Group, once India’s retail pioneer.
Reliance’s Expansion: Reliance continues to acquire distressed assets from the Future Group, strengthening its dominance in retail and logistics.
Investor Confidence: The case reinforces investor confidence in India’s insolvency framework, showing that distressed companies can be revived through structured resolution.

Challenges Ahead

While the approval is a positive step, challenges remain:

Integration: Reliance will need to integrate FSCSL’s operations into its existing logistics network.
Debt Legacy: Managing FSCSL’s past liabilities and ensuring smooth transition will be critical.
Competition: Reliance faces stiff competition from global and domestic players in logistics and e-commerce.

Conclusion

The NCLT’s approval of Reliance Retail’s ₹171 crore resolution plan for Future Supply Chain Solutions is a landmark development in India’s insolvency and retail sectors. It not only revives a struggling logistics company but also strengthens Reliance’s position as a dominant player in retail and supply chain management.

For creditors, employees, and the broader industry, the ruling provides a sense of stability and continuity. For Reliance, it is another strategic acquisition that cements its leadership in India’s fast-evolving retail ecosystem.