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The Central Bureau of Investigation has registered a case against Future Retail Ltd promoter Kishore Biyani, his brother Rakesh Biyani, and several others in connection with an alleged bank fraud causing a wrongful loss of Rs 904.32 crore to the State Bank of India. Following the registration of the First Information Report on November 4, the agency carried out searches across multiple premises linked to the promoters and directors of the retail company in Mumbai on Friday. The action follows a formal complaint lodged by SBI, which stated that credit facilities extended to Future Retail were systematically diverted rather than deployed for sanctioned commercial purposes.
The First Information Report names Kishore Biyani, Rakesh Biyani, other directors, and company guarantors, alongside unidentified public servants and private individuals. The charges encompass criminal conspiracy, cheating, and provisions of the Prevention of Corruption Act. Future Retail had secured an array of credit arrangements from SBI and a consortium comprising nine banks, including working capital facilities, term loans, and letters of credit meant to sustain its retail operations and trading activities. Authorities have emphasized that no final determination of guilt has been established at this stage of the proceedings.
Credit Facilities and Alleged Diversion of Funds
According to the central probe agency, the funds released under various banking facilities were not utilized for their designated operational needs. Preliminary findings suggest that loan proceeds were siphoned off and moved through associate companies and related entities, creating substantial wrongful losses for the primary lending bank. The investigation is currently reviewing financial ledgers to map the exact movement of funds, identify the recipient entities, and verify whether the capital was channeled into activities completely unrelated to the sanctioned limits.
Investigators are also evaluating the decision-making framework behind the transfers, focusing on the specific roles played by company promoters, directors, guarantors, and executives responsible for approving and handling transactions. Future Retail previously ran prominent retail chains including Big Bazaar, Fashion@Big Bazaar, and Foodhall, alongside extensive consumer goods and apparel trading that required massive working capital lines. The agency is looking closely into whether these corporate networks were used as conduits in a coordinated scheme to siphon money away from the consortium of lenders.
Seizure of Records During Mumbai Searches
The searches conducted on Friday covered several locations associated with key company figures across Mumbai, resulting in the recovery and seizure of critical financial records and administrative documents. Forensic teams and investigators will scrutinize these seized materials in coordination with banking records, fund-flow statements, and corporate balance sheets to establish a clear audit trail of the borrowed funds.
Officials stated that the operation was essential to preserve physical and digital evidence related to the suspected conspiracy. In addition to examining private corporate roles, the central agency is actively assessing whether any public servants facilitated the approval, disbursement, or monitoring lapses associated with the credit limits extended to Future Retail.
Broadening Scope to Trace End-Use of Borrowed Capital
The investigation continues with a primary focus on establishing the complete scope of the alleged conspiracy, determining individual liabilities, and tracing the final destination of the loan proceeds. A substantial part of this effort involves tracking transactions executed across linked firms and associate business entities that handled portions of the diverted money.
Agency officials indicated that future steps, including questioning individuals named in the First Information Report, will be determined by the documentary trail uncovered from the seized items and bank archives. As the probe progresses, authorities are working to pinpoint which entities ultimately benefited from the diverted funds and whether any further regulatory violations were committed during the execution of these credit facilities.
