CBI Books Future Retail and Kishore Biyani in Rs 904 Cr Bank Fraud
The Central Bureau of Investigation has registered a criminal case against Future Retail Limited, its founder Kishore Biyani, and co-promoter Rakesh Biyani for allegedly defrauding the State Bank of India of Rs 904.32 crore. Following the formal registration of the corruption case on November 4, federal investigators conducted coordinated search operations across multiple premises linked to the promoters and corporate directors in Mumbai on Friday. Agency officials recovered and seized incriminating documents, digital records, and financial transaction papers relevant to the ongoing probe during the searches. The enforcement action originated from a detailed criminal complaint filed by the State Bank of India's Stressed Assets Management Branch-III located in Mumbai.
Multi-Location Searches and Stressed Assets Complaint
In addition to Kishore Biyani and Rakesh Biyani, the FIR names executive directors, corporate guarantors, unknown public servants, and other private individuals. Future Retail operated widespread retail store networks across hypermarket and supermarket formats, including flagship retail chains like Big Bazaar, Foodhall, and Fashion at Big Bazaar. The retail conglomerate availed extensive credit lines, including working capital facilities, term loans, and letters of credit, from the State Bank of India's Commercial Branch at Fort, Mumbai, as part of a wider consortium of nine commercial banks. Between April 01, 2017 and April 30, 2022, a forensic audit of Future Retail Limited revealed systematic financial irregularities, according to MillenniumPost.
Consortium Borrowing and Fund Diversion Allegations
According to bank allegations, the company obtained substantial sanctioned credit facilities but failed to deploy the funds for contractually designated commercial purposes. Investigators alleged that the corporate leadership engaged in a premeditated conspiracy to siphon off loan proceeds through related corporate entities and associate companies. The fraudulent diversion of credit facilities resulted in an alleged wrongful loss of Rs 904.32 crore to the State Bank of India. Investigative inquiries are continuing to trace the end-use of borrowed capital and determine the specific culpability of bank officials and private intermediaries, according to TradingView. State Bank of India calculated an estimated wrongful loss of Rs 904.32 crore as on March 23, 2026, plus notional interest of Rs 1,331.91 crore.
Forensic Trail Tracing and Regulatory Ramifications
The legal action marks a significant development for the retail group, which was engaged in general trading of goods through multiple consumer outlets. The CBI stated that additional corporate executives and public servants may be named in future chargesheets as forensic evidence unfolds. Court documents confirm that Rakesh Biyani and his cousin Kishore Biyani directed executive decisions across nationwide store networks. SBI investigators alleged that credit facilities obtained from the consortium were systematically diverted instead of supporting commercial store inventories. The forensic audit identified 13 entities connected with Future Retail Limited to whom net payments of Rs 5,878.28 crore were made during the review period, according to Rediff Money.