Central Bank of India becomes successful bidder for Future's stake in insurance ventures

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26 Aug, 2025 12:21

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Central Bank of India on August 21 said it has emerged as the successful bidder for the stake acquisition of debt-ridden Future Enterprises Ltd (FEL) in life and general insurance venture.

In a regulatory filing, the state-owned bank said it has been declared as the successful bidder by the Committee of Creditors (CoC) for the sale of Category 1 assets of FEL in Future Generali India Life Insurance Company Limited and Future Generali India Insurance Company Limited.

The Letter of Intent dated August 20, 2024, is received by the bank in this regard, it added.

Future Enterprises owns a 25 percent stake in Future Generali India Insurance Company and a 33 per cent stake in Future Generali Life Insurance.

On July 20, 2022, the Mumbai bench of the National Company Law Tribunal (NCLT) ordered initiating insolvency resolution proceedings against the debt-ridden FRL and dismissed objections raised by e-commerce major Amazon.

The NCLT has passed the order after allowing the petition filed by the Bank of India (BoI), following loan defaults by FRL -- the flagship firm of the Kishore Biyani-led group.

Under the Insolvency & Bankruptcy Code, a company facing insolvency proceedings is protected under moratorium, and during that period any recovery through suits, decree, arbitration etc. is prohibited.

FEL is engaged in the business of manufacturing, trading, leasing of assets and logistics services. It used to develop, own and lease the retail infrastructure for the Future Group, and also holds the group’s investments in subsidiaries and joint ventures including in sectors like insurance, textile manufacturing, supply chain and logistics.

It was part of the 19 group companies operating in the retail, wholesale, logistic and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020. However, the deal was called off by Reliance Industries in April after it failed to get lenders’ support.

(With PTI inputs)