FMNL Says JC Flowers Took Possession of Ahmedabad Mall Site

Future Market Networks Limited (FMNL) said JC Flowers had taken possession of its 10-acre Ahmedabad mall site in proceedings linked to a Rs 184.4896 crore demand issued by Yes Bank on April 19, 2022. The demand was primarily against Basuti Sales & Trading Private Limited, while FMNL had pledged security connected with the property.

What happened to FMNL's Ahmedabad mall site?

FMNL said it understood that the matter had been settled between the parties and that JC Flowers had taken possession of the 10-acre Ahmedabad premises. The disclosure does not give a possession date, settlement amount, sale price or any terms of the reported settlement, and it does not state that ownership of the premises has transferred.

FMNL and Basuti challenged JC Flowers' symbolic-possession notice under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, or SARFAESI Act. The company said their applications seeking a stay of the Section 13(4) notice and sale proceedings were dismissed, and that amendments would be needed to the securitisation application following possession.

The next date in the Ahmedabad matter is November 6, 2026, according to FMNL's filing. Earlier, JC Flowers obtained an order under Section 14 of the SARFAESI Act from the Chief Metropolitan Magistrate, Ahmedabad, to take physical possession; FMNL said JC Flowers later withdrew its notice for physical possession after FMNL sought an amendment and a stay.

Why was the Ahmedabad property linked to the debt demand?

The Ahmedabad property was linked to a demand notice for Rs 184.4896 crore issued by Yes Bank on April 19, 2022. FMNL said the notice primarily sought repayment from Basuti Sales & Trading Private Limited within 60 days of receipt, while FMNL had provided security in connection with that borrowing.

FMNL pledged 3,830 equity shares of Riddhi Siddhi Mall Management Private Limited as security for the Ahmedabad property. It disclosed a fair value of Rs 62.67 crore for the immovable property as of March 31, 2023, compared with the Rs 184.4896 crore demand, and said it had told Yes Bank in letters dated June 3 and August 30, 2022 that its exposure should be limited to the mortgaged property's residual value.

Yes Bank issued its Section 13(4) notice for the 10-acre Ahmedabad, Gujarat property on November 10, 2022. FMNL then filed a securitisation application before Debts Recovery Tribunal-I, Ahmedabad, against Yes Bank's authorised officer; the filing says Yes Bank subsequently assigned all its debt to JC Flowers.

What other debt and property proceedings involve FMNL?

A separate Yes Bank original application, TA/96/2022, concerns loans extended to Basuti Sales & Trading Private Limited and Brattle Foods Private Limited. FMNL is a party to the Debts Recovery Tribunal, New Delhi proceeding, received a summons on November 20, 2023, and said both sides had concluded final arguments before the matter was to be listed for clarification on August 13, 2026.

FMNL also pursued possession and lease-rental claims involving Akashganga Enclave at the Ahmedabad mall against Future Retail Limited's insolvency estate. Future Retail was admitted into liquidation by order dated July 29, 2024; FMNL's Interlocutory Application 3861 of 2023 was dismissed on March 18, 2025, after the liquidator said lenders had resolved that rents would not be paid as corporate insolvency resolution process costs.

On April 18, 2025, FMNL filed a Form C claim for Rs 16.5141173 crore with Future Retail's official liquidator in connection with the liquidation. The filing says an undertaking had been given that possession would be handed over by May 31, 2025 and rental dues would be dealt with in accordance with law, but it does not disclose whether FMNL has received any amount on its claim.

The statutory auditor drew attention to the contingent liabilities arising from corporate guarantees, pledged assets and mall disputes in an emphasis-of-matter paragraph for the quarter and half year ended September 30, 2026. The auditor said its review conclusion was not modified in respect of those matters.

How did FMNL's financial position change by September 2026?

FMNL reported total assets of Rs 281.3366 crore as of September 30, 2026, compared with Rs 288.0972 crore on March 31, 2026. Total equity increased to Rs 130.1889 crore from Rs 124.6945 crore, while total liabilities decreased to Rs 151.1476 crore from Rs 163.4027 crore over the same six-month period.

Non-current borrowings declined to Rs 54.709 crore at September 30, 2026 from Rs 59.6676 crore at March 31, 2026, while current borrowings were unchanged at Rs 10.0019 crore. Investment properties increased to Rs 42.5588 crore from Rs 40.2674 crore, but FMNL did not identify whether this balance includes the Ahmedabad premises or disclose an accounting effect from JC Flowers' reported possession.

Cash and cash equivalents, including liquid-fund investments, were Rs 62.92 lakh at September 30, 2026, down from Rs 5.5825 crore a year earlier. For the half year ended September 30, 2026, FMNL recorded a Rs 20.1923 crore net financing cash outflow, versus Rs 23.7207 crore in the corresponding 2025 period, including Rs 13.9324 crore in lease-liability payments.

What other assets and disputes has FMNL disclosed?

FMNL surrendered leasehold rights in DCN Mall, Kolkata, effective July 31, 2026, and said the settlement amount was yet to be received. It also said land underlying Cosmos Mall in Ujjain had been converted from leasehold to freehold and that it had initiated the process to sell the designated hotel area in that mall.

A separate arbitration matter relates to commercial premises at Kharghpur, West Bengal, where an arbitral award dated May 19, 2016 granted Rs 12.90 crore to Mr. Surana. The filing says two bank guarantees totalling Rs 12 crore were liquidated, Rs 10.25 crore was paid to the claimant, and FMNL's supplementary affidavit records an additional Rs 7.75 crore received after termination of the arrangement.

FMNL said its appeal under Section 37 of the Arbitration and Conciliation Act against the award and the order in its Section 34 challenge remains pending for further hearing. The company operates only in Property and Related Services and therefore reports one operating segment under Indian Accounting Standard 108, or Ind AS 108.

Conclusion

FMNL's filing links the reported possession of the 10-acre Ahmedabad premises by JC Flowers to enforcement of a Rs 184.4896 crore demand primarily against Basuti Sales & Trading Private Limited. The Rs 62.67 crore fair value disclosed for the property as of March 31, 2023 was lower than the amount demanded, while FMNL maintained that its liability should be restricted to the residual value of the mortgaged security.

The next disclosed event is the November 6, 2026 date in the Ahmedabad securitisation matter, where FMNL says amendments are required after possession. Further disclosures to watch include any settlement terms, an order in the New Delhi debt proceeding, progress on FMNL's Rs 16.5141173 crore Future Retail liquidation claim, and receipt of the DCN Mall settlement amount.