Rahul Garg Is Named in Seven Pending Future Group Cases

Rahul Garg is named in seven pending Future Group proceedings disclosed in the prospectus: four insolvency-related applications and three tax deducted at source, or TDS, matters. The largest is a Future Retail Limited insolvency application involving approximately Rs 14,809.40 crore, although the prospectus says Rahul Garg’s individual amount is unascertainable.

Why is Rahul Garg named in seven pending Future Group cases?

Rahul Garg is named in the matters through former non-executive directorships at Future Retail Limited, Future Supply Chain Solutions Limited and Future Lifestyle Fashions Limited. Four proceedings are before the National Company Law Tribunal, or NCLT, under the Insolvency and Bankruptcy Code, 2016, while three notices concern alleged delays in remitting TDS under the Income Tax Act, 1961.

The prospectus categorises the four insolvency matters as material civil litigation involving Rahul Garg. Its materiality policy sets a threshold of Rs 1.046 crore, equal to 2% of the issuer’s Fiscal 2026 net worth, for usual monetary disclosure; each quantified Future Group matter exceeds that threshold. The disclosure does not allege that the issuer participated in the cited conduct, and all seven matters remain pending.

What are the four pending insolvency applications involving Rahul Garg?

The four insolvency applications concern alleged management failures at Future Retail Limited, an allegedly undervalued service agreement, related-party transactions at Future Supply Chain Solutions Limited and a Future Retail fixed-asset sale. The NCLT matters are pending before the Mumbai Bench or Mumbai Bench Court III, and the prospectus reports no decision in any of them.

In the largest application, the Future Retail resolution professional alleges that creditor losses arose, among other things, from the erstwhile management’s inability to manage software data, statutory non-compliance and delayed updates of critical information to stakeholders. The application invokes sections 66(2), 67 and 60(5) of the Insolvency and Bankruptcy Code and identifies approximately Rs 14,809.40 crore in the resolution process, without quantifying a personal amount against Rahul Garg.

A separate Future Retail application under section 45 seeks a declaration that a business service agreement with TNSI Retail Private Limited, described as a wholly owned Future Retail subsidiary, was undervalued. The amount involved is Rs 3.61 crore, compared with Rs 14,809.40 crore in the broader resolution-process application. The prospectus again states that Rahul Garg’s individual amount is unascertainable.

What does the Future Supply Chain application allege?

The Future Supply Chain Solutions resolution professional seeks a Rs 19.424 crore contribution from respondents, including Rahul Garg, in connection with related-party transactions during Financial Year 2019. Rahul Garg served as a non-executive director of Future Supply Chain Solutions from August 5, 2017 to February 7, 2019, according to the prospectus.

The application cites section 66 of the Insolvency and Bankruptcy Code and alleges that certain respondents failed to exercise due diligence and continued to divert funds to related parties during the twilight period. It identifies Rs 19.424 crore of transactions under section 66(1), while seeking contribution from respondents under section 66(2). Because the case remains pending, the requested contribution is not a finding of liability against Rahul Garg.

What is alleged in the Future Retail fixed-assets case?

The Future Retail liquidator alleges that fixed assets with an aggregate net book value of Rs 13.52 crore were sold for Rs 1.10 crore in Financial Year 2021, resulting in an alleged wrongful loss of Rs 12.42 crore. The section 45 application names suspended Future Retail directors, including Rahul Garg in his capacity as a non-executive director.

The assets covered leasehold improvements, plant and equipment, office equipment, and furniture and fixtures. The stated Rs 12.42 crore alleged loss is the difference between the Rs 13.52 crore net book value and Rs 1.10 crore sale proceeds. Rahul Garg has sought dismissal, stating that he was a non-executive director and was wrongly implicated; the matter is pending and his individual amount is unascertainable.

What do the three pending TDS proceedings involve?

The three TDS proceedings concern alleged delayed remittance of Rs 15.913 crore in deducted tax across assessment years 2021-22 and 2023-24. TDS is tax deducted by an entity before payment and required to be deposited with the government within the time prescribed by law; the notices refer to potential prosecution provisions under the Income Tax Act.

Two January 8, 2025 notices concern Future Lifestyle Fashions. For assessment year 2021-22, the tax authority alleged that Rs 8.711 crore of TDS had not been deposited within the prescribed period and treated Rahul Garg as a “Principal Officer” under section 2(35). Rahul Garg replied that, as a non-executive director, he could not be prosecuted under section 278B; the matter is pending.

For Future Lifestyle Fashions’ assessment year 2023-24, the stated TDS amount is Rs 4.43 crore. Rahul Garg replied that he resigned as non-executive director on March 12, 2022 and was therefore not associated with the company for that assessment year. The January 8, 2025 notice remains pending.

The third notice concerns Future Retail and assessment year 2021-22, with Rs 2.772 crore of allegedly delayed TDS deposits. After the initial June 20, 2023 notice, a March 6, 2025 notice sought an explanation of why sanction under section 279(1) should not be granted to file a prosecution complaint. Rahul Garg replied that he was not involved in Future Retail’s day-to-day affairs as a non-executive director, and the matter remains pending.

How should the disclosed amounts and tax figures be read?

The disclosed sums measure resolution-process amounts, transaction values, alleged losses or deducted TDS, rather than established personal liability of Rahul Garg. The three Future Retail applications together state Rs 14,825.43 crore when the Rs 14,809.40 crore resolution-process amount, Rs 3.61 crore service-agreement amount and Rs 12.42 crore alleged fixed-asset loss are added. In each Future Retail matter, the prospectus says the individual amount against Rahul Garg is unascertainable.

The tax summary contains figures that the prospectus does not reconcile with its detailed notices. Its footnote identifies Rs 55.913 crore in three tax matters involving Rahul Garg, while the three detailed TDS notices total Rs 15.913 crore; the table also lists four direct-tax cases involving directors at Rs 5.606 crore. The disclosure provides no explanation for the different amounts, so the detailed notices and the tax-table footnote should be treated as separate stated figures.

Conclusion

Rahul Garg’s disclosed matters comprise four unresolved insolvency applications and three unresolved TDS proceedings arising from former board positions at Future Retail, Future Supply Chain Solutions and Future Lifestyle Fashions. The largest stated amount, approximately Rs 14,809.40 crore, relates to Future Retail’s resolution process rather than a quantified individual claim against Rahul Garg, while his responses rely on his non-executive role and, in one tax matter, his March 12, 2022 resignation.

The next developments are NCLT outcomes in the four insolvency applications and tax-authority action on the three TDS notices, including the March 6, 2025 sanction notice concerning Future Retail. The prospectus records all seven matters as pending and leaves the individual exposure unascertainable in the Future Retail insolvency applications.