CBI Books Future Retail, Promoters in Rs 904 Cr Bank Fraud

The Cliff News | 6 November 2026

The Central Bureau of Investigation (CBI) has initiated a major investigation into a bank fraud amounting to Rs 904 crore, registering a case against Future Retail Ltd (FRL) and its prominent promoters, Kishore Biyani and Rakesh Biyani. The charges include alleged criminal conspiracy, cheating, and violations of the Prevention of Corruption Act, stemming from the diversion and siphoning of substantial bank funds.

Following the formal registration of the case on November 4, CBI teams conducted coordinated search operations across multiple locations in Mumbai believed to be linked to the promoters and directors of Future Retail. During these searches, investigators reportedly recovered and seized crucial documents pertinent to the financial transactions under scrutiny.

Allegations of Fund Diversion

The CBI launched its probe after receiving a formal complaint from the State Bank of India (SBI), specifically its Stressed Assets Management Branch-III in Mumbai. According to the agency's initial findings, Future Retail and its executives are accused of engaging in a criminal conspiracy to secure extensive credit facilities from SBI's Commercial Branch in Fort, Mumbai, and a consortium of nine other banks. These facilities included working capital loans, term loans, and letters of credit.

However, the retail entity and its leadership allegedly failed to utilize these sanctioned funds for their intended commercial purposes. Instead, the CBI alleges that the funds were systematically siphoned off and illegally diverted through a network of associate companies and connected entities. This alleged misappropriation resulted in a significant wrongful loss of approximately Rs 904.3 crore to the complainant bank and its consortium partners.

Wider Investigation Underway

The registered case also names unknown public servants and other unidentified individuals, indicating a broader scope to the investigation. The CBI stated that the ongoing investigations are aimed at thoroughly uncovering the complete extent of the alleged conspiracy. The agency seeks to establish the specific roles played by all parties involved, including private individuals and public servants, and to meticulously trace the ultimate end-use of the diverted loan funds.

Future Retail Ltd, previously a prominent player in the Indian retail sector, operated well-known chains such as Big Bazaar, Fashion@Big Bazaar, and Foodhall. It also had general trading operations in fast-moving consumer goods (FMCG) and fashion products. The alleged fraud could have significant implications for the company's stakeholders and the broader financial landscape.