The Central Bureau of Investigation (CBI) has registered a case of an alleged Rs 904.32-crore bank fraud against Future Retail Limited and its promoters Kishore Lakshminarayan Biyani and Rakesh Gopikishan Biyani, following a complaint by the State Bank of India (SBI). The agency has also named unidentified public servants and other unknown persons in the FIR.
The CBI conducted searches at multiple premises linked to the company's promoters and directors in Mumbai today. Several documents relevant to the investigation were reportedly recovered and seized during the searches.
The FIR was registered on November 4, 2026, based on a complaint filed by SBI on October 9, 2026. The bank has alleged that Future Retail Limited and its promoters misused credit facilities extended by banks and diverted substantial funds to other companies and connected entities, causing an alleged loss of Rs 904.32 crore to SBI.
According to the complaint, the company's directors allegedly transferred large amounts of borrowed funds to related companies and other connected entities. The financial capacity and actual business activities of some of these entities were allegedly not commensurate with the scale of transactions routed through them.
The CBI is investigating allegations of criminal conspiracy, cheating and offences under the Prevention of Corruption Act. The agency is examining the movement of funds, the entities that allegedly received the money and the possible involvement of public servants and other individuals in the alleged fraud.
Forensic Audit Flags Financial Irregularities
A key part of the bank's complaint is based on a forensic audit conducted by BDO India LLP on September 15, 2023. The audit covered the period from April 1, 2017, to April 30, 2022.
The forensic audit report allegedly flagged several irregularities in the company's financial records, including discrepancies in accounting records, manipulation of accounts, routing of financial transactions through multiple layers of companies and attempts to conceal the company's actual financial position.
SBI had extended loans and other credit facilities to Future Retail through its Commercial Branch in Mumbai. The company had also availed working capital and other financial facilities from a consortium of nine banks.
According to the complaint, the alleged diversion of funds to related and connected entities forms a key part of the suspected financial irregularities being investigated by the CBI.
Future Retail Account Declared NPA, Later Classified as Fraud
Future Retail had defaulted on its repayment obligations, following which SBI classified the company's account as a Non-Performing Asset (NPA) on April 26, 2021.
Subsequently, based on the findings of the forensic audit, the bank classified the account as fraudulent on March 23, 2025.
The CBI has now initiated a criminal investigation into the allegations based on SBI's complaint. The agency is attempting to establish how the borrowed funds were utilised, which companies and accounts received the money, and the role played by the promoters, directors and other individuals.
Future Retail's Business Operations
Future Retail Limited was once among India's major organised retail companies, operating a large network of stores across the country. Its retail portfolio included well-known brands such as Big Bazaar, Fashion at Big Bazaar, Foodhall and Hypercity.
The company operated across hypermarkets, supermarkets and household goods retail, besides dealing in FMCG and fashion products.
The investigation comes amid the financial troubles faced by the former retail giant, with the CBI now examining allegations that funds borrowed from banks were diverted through a network of related companies and entities.
The investigation is ongoing, and the allegations against the accused are yet to be established in court.
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