NEW DELHI: CBI has registered a bank fraud case involving Rs 904 crore against Mumbai-based Future Retail Ltd (FRL) and its top leadership, including key promoters Kishore Biyani and Rakesh Biyani, on charges of alleged diversion and siphoning off funds.Following registration of the case, ED conducted coordinated search operations across multiple premises linked to the promoters and directors of the company in Mumbai. Incriminating documents were seized during the raids, it said.The case, registered on Nov 4, also names unknown public servants and other unidentified individuals under charges of criminal conspiracy, cheating and violations of the Prevention of Corruption Act.The agency launched the probe following a complaint lodged by State Bank of India, Stressed Assets Management Branch-III, Mumbai. According to 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 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 and fashion products. CBI’s initial findings showed that the company defrauded the lending institution by wilfully failing to utilise the sanctioned bank funds for their intended commercial purposes.
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Instead, the funds were allegedly siphoned off and illegally diverted through a network of associate companies and connected entities, resulting in a loss of Rs 904.3 crore to the complainant bank and its consortium partners.CBI said investigations aimed 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.