Amid the financial challenges faced by Kishore Biyani's Future Group and their efforts to recover losses from the debt-ridden retailer, a glimmer of hope for recovery arises from a disused mall in South Mumbai controlled by the Biyani family.Lenders to Bansi Mall Management Co Pvt Ltd (BMMCPL), the owner of SOBO Central Mall in Mumbai's Haji Ali area, have initiated Sarfaesi proceedings to reclaim their outstanding dues amounting to Rs 5.71 billion.Canara Bank and Punjab National Bank (PNB) are the primary charge holders, having provided direct loans to the company. Canara Bank, with outstanding loans of Rs 1.31 billion, is the lead lender, while PNB holds primary dues of Rs 900 million, according to sources familiar with the matter.PNB, in conjunction with Union Bank of India, also holds a secondary charge over the company's assets because they collectively extended Rs 3.50 billion in loans to a group company, Future Brands, with BMMCPL's lease rental discounting serving as collateral.These two banks have secondary charge over the assets and will receive their dues only after Canara and PNB recover their principal and interest, explained a source familiar with the situation.Canara Bank has yet to decide whether to seek a buyer through an auction or to sell the loan to an asset reconstruction company for cash. However, bankers express confidence in the potential for recovery from this account. Canara Bank did not respond to an email inquiry.This is a four-storey commercial building in a prime Mumbai location with redevelopment potential. If the banks find the right buyer, this property could be redeveloped and sold for more than Rs 10 billion. It would be a rare recovery from the Future Group, said another source with knowledge of the matter.However, it's worth noting that Canara Bank's most recent valuation of the property pegs its value at Rs 4 billion, down from Rs 6 billion at the time the loan was granted.The value has declined because it is essentially a defunct mall. With no tenants, the assigned value is lower, although banks are considering its potential for redevelopment, the first source explained.SOBO Central Mall has been left virtually vacant, except for a McDonald's outlet that was established when it opened in 1999. It is Mumbai's oldest mall, boasting a total leasable area of 150,000 square feet. However, the emergence of new shopping destinations within the city and suburbs, coupled with the impact of the COVID-19 pandemic, prevented its recovery. Additionally, most of its real estate was leased to Future Group companies, which were also under financial strain.In a report issued last month, credit rating agency Crisil highlighted the non-cooperation of BMMCPL while rating its Rs 2.50 billion bank loan facilities as 'D,' signifying the default category. In June 2021, Crisil downgraded BMMCPL to 'C' from 'B-', indicating a very high risk of default.Lenders are banking on the prime real estate's potential for redevelopment to help recover some dues from Biyani-promoted companies, even as they face the possibility of substantial losses in recovering the approximately Rs 320 billion owed by Future Retail and Future Enterprises, the group's flagship entities.