CBI searches Biyani-linked sites in alleged ₹904 crore loan fraud
The case puts lender controls and creditor recovery under scrutiny
Overview
’s collapse is now the subject of a criminal case after SBI alleged that the retailer caused a wrongful loss of ₹904.32 crore. The bank says received , and from SBI and a . It alleges that the company moved some of the money through related companies instead of using it for approved business needs. The also alleges complex transactions and altered financial records.
The FIR names founder Kishore Biyani, his brother Rakesh Biyani, , unknown public servants and others. The searched Mumbai premises linked to the promoters and directors and seized documents. It is tracing the money and checking other people’s roles. ’s financial problems exposed lenders and creditors to losses. But failing to repay a loan does not by itself prove fraud. The FIR contains allegations, not a finding of guilt, and the investigation must establish what happened.
Timeline
The CBI continued investigating the alleged fund diversion without establishing criminal liability
The latest reported position is that the investigation is continuing after the and Mumbai searches. Investigators are seeking to identify the complete transaction chain, determine how the borrowed funds were used and establish the roles of additional people. Kishore Biyani, Rakesh Biyani and remain accused in an ongoing investigation, not convicted offenders.
Future Retail’s financial distress and creditor exposure formed the background to the alleged bank fraud case
Future Retail faced financial distress and insolvency-related proceedings, with lenders exposed to its unpaid obligations. The CBI separately registered a case alleging that ₹904.32 crore in bank credit was misused, while the investigation was continuing and did not establish fraud merely from the company’s financial failure.
The CBI widened its inquiry to other individuals and public servants
The agency said it was examining the roles of all persons involved, including private individuals and public servants. It is also tracing the end use of the loan funds and assessing the full extent of the alleged conspiracy. The available reporting does not establish additional arrests, convictions or final findings.
The CBI searched Mumbai premises linked to Future Retail’s promoters and directors
After registering the case, CBI teams conducted searches at multiple premises linked to the company’s promoters and directors in Mumbai. Investigators recovered and described as relevant to the alleged bank-fund diversion. The searches provide material for the investigation but do not by themselves establish that the allegations are true.
The CBI alleged that Future Retail diverted and siphoned loan funds through connected companies
The agency alleged that Future Retail did not use sanctioned funds for their intended commercial purposes. Its stated theory involves diversion, and through associate and connected companies. The CBI also alleged manipulation of financial records, while continuing to investigate the underlying transactions and end use of the funds.
The CBI registered an FIR against Future Retail and the Biyani brothers
The CBI named Future Retail, Kishore Biyani and Rakesh Biyani in a case based on SBI’s complaint. The also named unknown public servants and other unknown persons, alleging criminal conspiracy to cheat and offences under the . Registration of an records allegations for investigation, not a proven offence or final finding of liability.
SBI filed a complaint alleging Future Retail caused a ₹904.32 crore wrongful loss
SBI’s in Mumbai complained that Future Retail and its promoters misused bank finance, causing an alleged wrongful loss of ₹904.32 crore. The complaint concerned credit facilities extended by SBI and a consortium of nine banks, including working-capital facilities, term loans and . The allegations moved the matter beyond a repayment dispute toward possible criminal investigation.