Retail mogul Kishore Biyani has proposed a ₹476-crore settlement to lenders, led by Canara Bank, to resolve the ₹571 crore debt owed by Bansi Mall Management Co Pvt. Ltd. (BMMCPL), the entity behind Mumbai’s SOBO Central Mall. This offer comes in response to an earlier bid of ₹475 crore from the Runwal Group, as reported by the Economic Times.
Biyani’s proactive move follows creditors’ acceptance of the Runwal Group’s bid, prompting him to challenge their decision in the Debts Recovery Tribunal (DRT). A source familiar with the matter revealed to the Economic Times that Biyani is determined to surpass the Runwal bid and has sought court intervention. The outcome of a hearing scheduled later this month will be pivotal in shaping the resolution process.
The Runwal Group had already remitted ₹47.5 crore, equivalent to 10% of their offer, to the lenders. However, Biyani’s legal challenge temporarily halted further proceedings. The Runwal Group declined to comment on the ongoing developments.
SOBO Central Mall, Mumbai’s venerable retail destination spanning 1,50,000 square feet, has encountered headwinds amid the emergence of new shopping hubs and the lingering impact of the COVID-19 pandemic. Presently, the mall hosts only one tenant, a McDonald’s outlet. Moreover, a substantial portion of its premises was leased to Future Group entities, which faced financial woes of their own.
Canara Bank and Punjab National Bank (PNB) stand as the principal creditors to BMMCPL, with Canara Bank leading the consortium with outstanding loans amounting to ₹131 crore, while PNB holds dues worth ₹90 crore.
According to insiders cited by the Economic Times, Biyani’s bid is bolstered by the backing of a prominent real estate and retail developer, foreseeing growth opportunities in South Mumbai’s commercial landscape. However, given the lenders’ existing engagement with the Runwal Group, Biyani will need to demonstrate a tangible commitment to his offer.
The lenders are optimistic about unlocking the redevelopment potential of the four-story commercial edifice, banking on the allure it holds for real estate investors. This optimism underpins their efforts to recoup their outstanding dues, heralding a critical phase in the mall’s financial restructuring journey.
