Following a complaint by the State Bank of India, the CBI alleges that loan funds were diverted through connected entities. Searches at premises linked to the Biyanis in Mumbai led to the seizure of documents.
New Delhi, (Economy India): The Central Bureau of Investigation (CBI) has registered a case against Future Retail Ltd (FRL), its promoter Kishore Biyani and his brother Rakesh Biyani in connection with an alleged bank fraud involving ₹904.32 crore, following a complaint by the State Bank of India (SBI).
The central investigative agency also conducted searches at multiple premises linked to the company’s promoters and directors in Mumbai on Friday, November 6. During the searches, investigators recovered and seized documents considered relevant to the alleged financial irregularities, officials said.
The case involves allegations of criminal conspiracy and cheating, along with offences under the Prevention of Corruption Act. The CBI has also named unidentified public servants and other individuals in the FIR.
According to the agency, the alleged financial wrongdoing resulted in a wrongful loss of ₹904.32 crore to the complainant bank. The allegations are under investigation and have not been established in court.
SBI Complaint Triggers CBI Investigation
The CBI registered the case on November 4, 2026, based on a complaint filed by the State Bank of India’s Stressed Assets Management Branch-III in Mumbai.
The FIR names Future Retail Ltd and its promoters, managing directors, executive directors and guarantors, including Kishore Biyani and Rakesh Biyani.
The agency has also included unknown public servants and other unidentified individuals as accused in the case.
In its statement, the CBI said the complaint alleged a criminal conspiracy to obtain credit facilities from SBI and a consortium of nine banks, resulting in an alleged wrongful loss of ₹904.32 crore.
The investigation is aimed at examining the transactions, the utilisation of sanctioned loans and the roles of the individuals and entities involved.
CBI Alleges Diversion and Siphoning of Bank Funds
A central allegation in the case concerns the alleged diversion of funds obtained through banking facilities.
According to the CBI, Future Retail allegedly failed to utilise the funds for the purposes for which the loans and other credit facilities had been sanctioned.
Instead, the agency alleges that funds were diverted and siphoned off through associate companies and connected entities, causing financial losses to the lending bank.
The investigation will examine the movement of money through these entities, the transactions undertaken and the ultimate utilisation of the borrowed funds.
The CBI is also investigating whether other individuals, including public servants and private parties, played any role in the alleged conspiracy.
Credit Facilities Included Working Capital Loans and Letters of Credit
According to details reported in connection with the CBI case, the credit facilities under examination included working capital loans, term loans and letters of credit.
Future Retail had obtained financial facilities from SBI and a consortium of nine banks.
The agency is examining whether the funds were used in accordance with the terms and conditions under which the facilities were sanctioned.
The alleged diversion of funds through associated and connected entities is a key part of the investigation.
The CBI has said that tracing the end-use of the loan funds will be an important part of establishing the full extent of the alleged financial irregularities.
Mumbai Searches Lead to Seizure of Documents
Following registration of the FIR on November 4, the CBI carried out searches at multiple premises linked to Future Retail’s promoters and directors in Mumbai on November 6.
During the searches, investigators recovered and seized documents that the agency considers relevant to the case.
The seized material is expected to form part of the evidence being examined as investigators reconstruct the financial transactions and assess the movement of funds.
The agency has not publicly disclosed the detailed contents of the seized documents.
The searches represent an investigative step in the case and do not, by themselves, establish the allegations against the individuals named in the FIR.
Kishore Biyani and Rakesh Biyani Named in FIR
The case places Kishore Biyani and Rakesh Biyani under the CBI’s investigation in their capacity as promoters and senior executives associated with Future Retail.
Kishore Biyani is widely known for building the Future Group’s organised retail business in India. His retail ventures helped popularise large-format shopping through supermarket and hypermarket chains.
Rakesh Biyani has also been associated with the group’s retail operations.
The CBI has named both brothers in the FIR along with the company, unidentified public servants and other unknown individuals.
No immediate reaction from the company was available at the time of reporting. <Cite refs={[“turn579428search0″,”turn579428search2”]}/>
Future Retail Operated Big Bazaar, Foodhall and Other Retail Formats
Future Retail was among India’s prominent organised retail businesses and operated several well-known retail formats.
Its businesses included:
- Big Bazaar: A large-format hypermarket and supermarket chain.
- Fashion@Big Bazaar: A retail format focused on apparel and fashion products.
- Foodhall: A premium food and grocery retail format.
The company also operated in the general trading of fast-moving consumer goods (FMCG) and fashion products through its retail network.
Its business activities covered multiple categories of consumer goods, making it a significant name in India’s organised retail landscape. <Cite refs={[“turn579428search0″,”turn579428search7”]}/>
CBI to Examine Roles of Public Servants and Private Individuals
The investigation is not limited to the company’s promoters and directors.
The CBI has also named unknown public servants and other unidentified individuals in the case. Investigators are examining whether any public officials or private parties were involved in the alleged conspiracy or facilitated the transactions.
The agency has stated that the probe will focus on:
- Establishing the full extent of the alleged conspiracy.
- Identifying the roles of all individuals involved.
- Examining the involvement, if any, of public servants.
- Tracing the end-use of the credit facilities.
- Investigating the alleged diversion of funds through connected entities.
The findings of the investigation will determine the next course of legal action. <Cite refs={[“turn579428search0″,”turn579428search4”]}/>
Allegations Yet to Be Established
The registration of an FIR marks the beginning of a criminal investigation and does not amount to a determination of guilt.
The allegations against Future Retail, Kishore Biyani, Rakesh Biyani and other individuals will have to be examined through the investigation and subsequent legal proceedings.
The CBI is continuing its probe into the alleged bank fraud, while the company had not issued an immediate response to the case at the time of reporting.
A Significant Banking Fraud Investigation
The alleged ₹904.32 crore bank fraud case brings renewed attention to the financial transactions of Future Retail and the credit facilities extended by SBI and a consortium of banks.
The investigation will now focus on establishing how the funds were obtained, how they were utilised and whether money was diverted through associated entities.
For the banking sector, the case also highlights the importance of monitoring large corporate credit facilities, tracking the utilisation of sanctioned funds and identifying potential irregularities in complex business transactions.
As the CBI examines the seized documents and financial records, the investigation is expected to establish the extent of the alleged wrongdoing and the individual responsibilities, if any, of those named in the FIR.
(Economy India)
