CBI Books Future Retail Promoters Kishore and Rakesh Biyani in ₹904 Crore Bank Fraud Case

The Central Bureau of Investigation (CBI) has booked Future Retail Ltd top executives Kishore Biyani and Rakesh Biyani on charges of criminal conspiracy and siphoning off bank loans amounting to ₹904.32 crore. Future Retail Ltd is the company behind well-known retail outlets such as Big Bazaar, Fashion@Big Bazaar, and Foodhall, alongside general trading operations in FMCG and fashion goods.

According to the CBI, the case was registered on November 4 following a formal complaint filed by the State Bank of India (SBI). The complaint alleges that the accused individuals entered into a criminal conspiracy to obtain credit facilities, including working capital, term loans, and letters of credit, from a consortium of nine banks.

The credit facilities were availed through SBI’s Commercial Branch located at Fort, Mumbai. Investigators allege that the company defrauded the banking consortium by failing to utilize the disbursed funds for their intended purposes. Instead, the funds were allegedly diverted and siphoned off through various associate companies and connected entities, resulting in a substantial financial loss to the lending institutions.

Following the registration of the corruption case, the CBI executed searches on Friday at multiple premises linked to the promoters and directors of Future Retail Ltd in Mumbai. The agency confirmed that incriminating documents relevant to the ongoing investigation were recovered during these operations.

In addition to the Biyani cousins and the corporate entity itself, the FIR also names unknown public servants and unknown individuals as accused parties. The inclusion of unidentified persons allows the CBI to incorporate additional names into the chargesheet if the probe uncovers further evidence connecting them to the alleged financial irregularities.

The CBI stated that the investigation remains active. Authorities are working to ascertain the full extent of the conspiracy, identify the specific roles played by all involved private individuals and public servants, and trace the final end-use of the loan funds.

"This case highlights the critical importance of fund utilization transparency and corporate governance in large retail enterprises. When companies borrow from banking consortia, strict adherence to the intended purpose of capital is vital. Financial irregularities not only trigger severe legal consequences for promoters but also destabilize trust within the broader financial and lending ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes