The Central Bureau of Investigation (CBI) has registered a bank fraud case against Future Retail Ltd. and its promoters, including Kishore Biyani and Rakesh Biyani, over an alleged fraud involving Rs 904.32 crore, following a complaint by the State Bank of India (SBI).
The agency has also conducted searches at multiple premises linked to the company's promoters and directors in Mumbai as part of its investigation.
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According to a CBI press release, the case was registered on November 4 on a complaint filed by SBI's Stressed Assets Management Branch-III in Mumbai. The complaint names Future Retail, its promoters, managing directors, executive directors and guarantors, along with unidentified public servants and other individuals.
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The case involves allegations of criminal conspiracy and cheating, along with offences under the Prevention of Corruption Act. The alleged wrongdoing has resulted in a wrongful loss of Rs 904.32 crore to the bank, the CBI said.
According to the agency, Future Retail had obtained various credit facilities from SBI, including working capital loans, term loans and letters of credit. The company had also secured credit facilities from a consortium of nine banks.
The CBI has alleged that the accused entered into a criminal conspiracy to obtain these credit facilities but failed to use the funds for the purposes for which they were sanctioned.
Instead, the company allegedly diverted the loan proceeds through associate companies and connected entities, resulting in losses to the lending bank. The agency is examining the end-use of the borrowed funds and the alleged diversion of money to establish the full extent of the suspected fraud.
After registering the case on November 4, the CBI conducted searches on November 6 at several premises linked to Future Retail's promoters and directors in Mumbai.
During the searches, investigators recovered and seized documents considered relevant to the investigation, the agency said.
The investigation is now focused on establishing the alleged conspiracy, identifying the roles of all individuals involved and examining whether any public servants or private individuals facilitated the transactions.
The CBI said it is continuing its probe to trace the end-use of the loan funds and determine the extent of the alleged financial irregularities.
Future Retail operated several retail formats, including Big Bazaar, Fashion@Big Bazaar and Foodhall. Its business spanned hypermarkets, supermarkets and general trading in fast-moving consumer goods (FMCG) and fashion products.
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The company was among India's prominent organised retail players, with Big Bazaar emerging as one of its best-known supermarket chains.
The CBI's latest action puts Kishore Biyani, widely regarded as the architect of India's modern organised retail industry, and the company's former retail operations under investigation in connection with the alleged Rs 904.32 crore bank fraud.
The allegations are under investigation, and the CBI is yet to establish the culpability of the accused.
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