CBI Launches Major Probe into ₹904.32-Crore Bank Fraud; Future Retail, Kishore Biyani, Rakesh Biyani Named in FIR
Searches Conducted at Multiple Mumbai Premises Linked to Promoters and Directors; Documents Seized as Probe into Alleged Loan Diversion and Criminal Conspiracy Intensifies
(Judicial Quest News Network)
Mumbai, 6, Nov, 2026-In a significant development in the ongoing fight against financial fraud and banking irregularities, the Central Bureau of Investigation (CBI) has registered a major bank fraud case involving an alleged loss of ₹904.32 crore to the State Bank of India (SBI), naming Mumbai-based retail major M/s Future Retail Ltd. (FRL), its promoters and senior management, including Kishore Biyani and Rakesh Biyani, among the accused.
The case, registered on November 4, 2026, follows a complaint lodged by the State Bank of India’s Stressed Assets Management Branch–III, Mumbai.
The allegations relate to an alleged criminal conspiracy to cheat the lending institution through the procurement of substantial credit facilities, followed by the suspected diversion and siphoning of funds through associate companies and connected entities.
The CBI has also named unknown public servants and other unidentified persons in the case, indicating that the investigation may extend beyond the company’s management to examine the possible involvement of individuals within the public banking and administrative framework.
According to the allegations contained in the bank’s complaint, the accused persons, acting in furtherance of an alleged criminal conspiracy, secured various credit facilities from SBI and a consortium of nine banks.
The facilities reportedly included working capital assistance, term loans and Letters of Credit, which were sanctioned to support the company’s business operations and financial requirements.
Future Retail Ltd. operated several prominent retail formats across the country, including Big Bazaar, Fashion@Big Bazaar and Foodhall.
Its business activities also encompassed general trading in fast-moving consumer goods (FMCG) and fashion merchandise through its network of retail outlets.
The company had availed credit facilities from SBI’s Commercial Branch, Fort, Mumbai. However, the bank has alleged that the funds were not utilised for the specific purposes for which the credit facilities had originally been sanctioned.
Instead, the complaint alleges that substantial portions of the borrowed funds were diverted and siphoned off through associate companies and connected entities, allegedly resulting in a wrongful loss of ₹904.32 crore to the complainant bank.
The precise trail of the funds, the entities through which the alleged diversion took place and the individual responsibilities of those involved are now expected to form key components of the CBI investigation.
Following registration of the FIR, the CBI launched coordinated search operations on November 6, 2026, at multiple premises in Mumbai linked to the promoters and directors of Future Retail Ltd.
During the searches, the investigating agency recovered and seized documents stated to be relevant to the investigation.
The seized material is expected to assist investigators in examining the company’s financial transactions, loan utilisation records, corporate relationships and the alleged movement of funds between the principal borrower and associated entities.
The searches mark an important investigative step in establishing the financial architecture of the alleged fraud and identifying the persons who may have played a role in the suspected diversion of public banking funds.
The registration of the case also brings the alleged involvement of unknown public servants under the investigative scanner.
The CBI is examining allegations relating to criminal conspiracy and cheating, alongside offences under the Prevention of Corruption Act, 1988.
The investigation will seek to establish whether the credit facilities were obtained through fraudulent representations, whether the sanctioned funds were deliberately diverted from their intended purposes, and whether any public servant or private individual facilitated the alleged financial misconduct.
The precise statutory provisions invoked in the FIR will determine the applicable criminal liability and the scope of the investigation. The allegations are yet to be tested through judicial proceedings.
The CBI has stated that the investigation is continuing to ascertain the full extent of the alleged conspiracy, identify the roles of all persons involved, including public servants and private individuals, and trace the ultimate utilisation and movement of the loan funds.
The investigation is also expected to examine the financial dealings of associate companies and connected entities to establish whether the alleged diversion was part of a coordinated arrangement.
The case assumes significance against the backdrop of the banking sector’s continuing efforts to address large-value loan defaults, fraudulent credit transactions and the diversion of institutional funds.
The central question before the investigators is whether credit facilities extended for legitimate commercial operations were allegedly converted into instruments of financial diversion, causing substantial loss to a public sector bank.
The allegations against the company and the named individuals remain subject to investigation, and guilt can be established only through due process of law and adjudication by a competent court.
