NEW DELHI: CBI has registered a major bank fraud case involving Rs 904 crore against Mumbai-based firm Future Retail Ltd. (FRL) and its top leadership, including key promoters Kishore Biyani and Rakesh Biyani on charges of alleged diversion and siphoning of funds.Following registration of the case, the agency conducted coordinated search operations across multiple premises linked to the promoters and directors of the firm in Mumbai. During these raids, investigating officers recovered and seized key incriminating documents relevant to the financial transactions.The case, registered on November 4, also names unknown public servants and other unidentified individuals under charges of criminal conspiracy, cheating, and violations under the Prevention of Corruption Act.The investigative agency launched the probe following a formal complaint lodged by the State Bank of India (SBI), Stressed Assets Management Branch-III, Mumbai. According to the CBI, the retail entity and its executives entered into a criminal conspiracy to obtain extensive credit facilities — including working capital loans, term loans, and letters of credit — from SBI’s Commercial Branch in Fort, Mumbai, as well as a consortium of nine participating banks.Future Retail Ltd previously operated multiple well-known retail formats, including hypermarket and supermarket chains such as Big Bazaar, Fashion@Big Bazaar, and Foodhall, alongside general trading operations in fast-moving consumer goods (FMCG) and fashion products.
The CBI’s initial findings reveal that the company defrauded the lending institution by willfully failing to utilize the sanctioned bank funds for their intended commercial purposes. Instead, the funds were allegedly siphoned off and illegally diverted through a network of associate companies and connected entities, resulting in a wrongful loss of ₹904.3 crore to the complainant bank and its consortium partners.The CBI stated that ongoing investigations aim to uncover the complete extent of the conspiracy, establish the specific roles of all involved parties — including private individuals and public servants — and trace the ultimate end-use of the diverted loan funds.