The Central Bureau of Investigation (CBI) has registered a case against businessman Kishore Biyani, his brother Rakesh Biyani and Future Retail Ltd (FRL) over an alleged bank fraud amounting to ₹904.32 crore involving the State Bank of India (SBI). The FIR was registered on November 4, 2026, following a complaint by SBI’s Stressed Assets Management Branch-III in Mumbai. The agency alleges that funds obtained through credit facilities from SBI and a consortium of nine banks were diverted through associate companies and connected entities instead of being used for their sanctioned purposes.
The CBI also conducted searches at multiple premises linked to the company’s promoters and directors in Mumbai on November 6, recovering and seizing documents relevant to the investigation. The case names unidentified public servants and other individuals as well. While the investigation is underway, no immediate response was available from the company, and the allegations against those named in the FIR are yet to be established in court.
How The Alleged ₹904 Crore Diversion Took Place
According to the CBI’s preliminary findings, Future Retail allegedly obtained working capital facilities, term loans and letters of credit from SBI, along with credit facilities from a consortium of nine banks. The agency alleges that the company failed to utilise the borrowed money for the purposes for which the loans had been sanctioned. Instead, funds were allegedly transferred through associate companies and connected entities, resulting in a wrongful loss of ₹904.32 crore to the complainant bank. A forensic audit conducted by BDO India LLP, covering the period from April 1, 2017, to April 30, 2022, also flagged several financial irregularities.
According to details reported by The Economic Times, the audit identified net payments of ₹5,878.28 crore to 13 related and connected entities. It also flagged transactions involving nine other connected entities whose financial capacity and reported revenues were allegedly disproportionate to the amounts they received. The CBI has registered the case under provisions relating to criminal conspiracy, cheating and offences under the Prevention of Corruption Act. During its November 6 searches, the agency recovered documents that could help establish the movement and eventual use of the borrowed funds.
Big Bazaar’s Expansion To Future Retail’s Financial Collapse
Kishore Biyani was once regarded as one of India’s most influential retail entrepreneurs, having played a significant role in expanding organised retail in the country. Future Retail operated popular supermarket and hypermarket formats, including Big Bazaar, Fashion@Big Bazaar and Foodhall, catering to millions of customers across different cities. However, the company subsequently faced mounting financial difficulties, debt obligations and challenges in sustaining its business operations. Its proposed ₹24,713 crore deal with Reliance Industries in 2020, involving the transfer of several retail and other businesses, became embroiled in legal disputes with Amazon, which opposed the transaction.
The deal eventually did not materialise. As its financial position deteriorated, Future Retail entered insolvency proceedings, and the Mumbai bench of the National Company Law Tribunal (NCLT) ordered its liquidation in 2024. The latest CBI investigation adds another dimension to the company’s financial troubles, with investigators now examining the alleged diversion of bank loans and the possible involvement of individuals and connected businesses. The agency has stated that its investigation will establish the extent of the alleged conspiracy, identify the roles of private individuals and public servants, and trace the end-use of the loan funds. Importantly, registration of an FIR does not establish guilt, and those named in the case are entitled to due process of law.
The Logical Indian’s Perspective
Large-scale financial fraud allegations involving banks raise important questions about corporate accountability, responsible lending and the protection of public money. Banks play a crucial role in supporting businesses, generating employment and sustaining economic activity. When allegations of financial misconduct emerge, it is essential that investigative agencies conduct thorough, impartial and transparent investigations, irrespective of the individuals or companies involved. At the same time, allegations must not be treated as convictions, and every individual deserves a fair opportunity to present their case.
The investigation should establish where the borrowed money went, whether any regulatory or institutional failures contributed to the alleged wrongdoing, and who should be held accountable if the charges are proven. Public trust in financial institutions depends not only on preventing fraud but also on ensuring that accountability is enforced fairly and consistently. How can India strengthen corporate accountability and banking oversight to prevent the misuse of public money while ensuring fairness and transparency in investigations?
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