CBI books Biyani brothers, Future Retail in Rs 904 crore bank fraud case

The Central Bureau of Investigation (CBI) has registered a case against Future Retail Ltd and its promoters, including businessman Kishore Biyani and his brother Rakesh Biyani, in connection with an alleged Rs 904.32 crore bank fraud involving the State Bank of India (SBI), officials said on Friday.

The agency also conducted searches at multiple premises linked to the company's promoters and directors in Mumbai as part of its investigation into the alleged diversion and siphoning of bank funds.

The FIR was registered on November 4 following a complaint lodged by SBI's Stressed Assets Management Branch-III in Mumbai. The case names Future Retail, Kishore Biyani, Rakesh Biyani, unidentified public servants and other unknown individuals.

The accused have been booked for alleged criminal conspiracy and cheating, along with offences under the Prevention of Corruption Act.

𝗦𝗕𝗜 𝗮𝗹𝗹𝗲𝗴𝗲𝘀 𝗥𝘀 𝟵𝟬𝟰 𝗰𝗿𝗼𝗿𝗲 𝗹𝗼𝘀𝘀

According to the CBI, the case concerns an alleged conspiracy to obtain credit facilities from SBI and a consortium of nine banks.

The facilities included working capital loans, term loans and letters of credit sanctioned to Future Retail for its business operations.

The company had also availed itself of credit facilities from SBI's Commercial Branch at Fort in Mumbai.

In its complaint, the bank alleged that the accused obtained these financial facilities but failed to utilise the money for the purposes for which the loans had been sanctioned.

The CBI said the alleged irregularities resulted in a wrongful loss of Rs 904.32 crore to SBI.

𝗙𝘂𝗻𝗱 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝘂𝗻𝗱𝗲𝗿 𝘀𝗰𝗮𝗻𝗻𝗲𝗿

Investigators suspect that funds obtained through the credit facilities were diverted to associate companies and other connected entities instead of being used for Future Retail's approved business requirements.

The agency alleged that the diversion and siphoning of funds caused financial losses to the lending bank.

Future Retail, once a prominent player in India's organised retail sector, operated several well-known retail formats, including Big Bazaar, Fashion\@Big Bazaar and Foodhall.

Its operations covered hypermarkets, supermarkets and the general trading of fast-moving consumer goods and fashion products.

The company was promoted by Kishore Biyani, who became a prominent figure in India's organised retail industry through the expansion of the Big Bazaar chain.

𝗖𝗕𝗜 𝗿𝗮𝗶𝗱𝘀 𝗠𝘂𝗺𝗯𝗮𝗶 𝗽𝗿𝗲𝗺𝗶𝘀𝗲𝘀

Following the registration of the FIR, CBI teams conducted searches on Friday at several locations in Mumbai associated with the company's promoters and directors.

Officials said investigators recovered and seized documents considered relevant to the case during the searches.

The seized material will be examined as part of efforts to trace the movement of funds and determine whether the loans were used for purposes other than those approved by the banks.

The agency is also examining the possible involvement of unidentified public servants and private individuals in the alleged transactions.

𝗣𝗿𝗼𝗯𝗲 𝗶𝗻𝘁𝗼 𝗳𝘂𝗻𝗱 𝘁𝗿𝗮𝗶𝗹 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀

The CBI said its investigation would focus on establishing the full extent of the alleged conspiracy, identifying the roles of those involved and tracing the end-use of the borrowed funds.

Investigators will also examine the financial transactions involving Future Retail and its associated entities to determine how the sanctioned credit facilities were utilised.

The allegations against the Biyani brothers and other accused remain under investigation and have not been established in court.

No immediate response was available from Future Retail regarding the allegations.

The investigation is continuing, with the agency examining the seized records and the circumstances surrounding the alleged financial irregularities.