The Central Bureau of Investigation (CBI) has registered a bank fraud case involving ₹904.32 crore against Future Retail Ltd (FRL), its promoters Kishore Biyani and Rakesh Biyani, and other unidentified individuals. The agency has also searched multiple premises linked to the company’s promoters and directors in Mumbai, seizing documents that it considers relevant to the investigation.
The case follows a complaint from the State Bank of India’s (SBI) Stressed Assets Management Branch-III in Mumbai. According to the CBI, Future Retail allegedly diverted loan funds through associate companies and connected entities instead of using the money for the purposes for which the credit facilities were sanctioned. The allegations also involve suspected manipulation of financial records and the layering of transactions. The investigation is ongoing, and the allegations have not been established in court.
Key Takeaways
- The CBI has registered a case involving an alleged ₹904.32 crore loss to State Bank of India.
- The FIR names Future Retail, Kishore Biyani, Rakesh Biyani, unidentified public servants and other individuals.
- The case was registered on November 4, 2026, following a complaint from SBI dated October 9.
- CBI teams searched multiple premises linked to Future Retail’s promoters and directors in Mumbai.
- The investigation concerns alleged diversion of bank funds through associate companies and connected entities.
- A forensic audit covering April 2017 to April 2022 reportedly identified several transactions and accounting discrepancies that SBI has cited in its complaint.
CBI Registers FIR Against Future Retail and the Biyani Brothers
The CBI registered the case on November 4, 2026, following a complaint filed by SBI’s Stressed Assets Management Branch-III in Mumbai. The agency named Future Retail Ltd and its promoters and directors, including Kishore Biyani and his brother Rakesh Biyani.
The FIR also refers to unidentified public servants and other individuals who may have been involved in the alleged transactions. The agency has invoked provisions relating to criminal conspiracy and cheating under the erstwhile Indian Penal Code, along with relevant provisions of the Prevention of Corruption Act.
According to the CBI, the alleged wrongful loss to SBI amounts to ₹904.32 crore. The agency is examining the role of the company’s promoters, directors, guarantors and other connected parties.
Following the registration of the FIR, CBI teams carried out searches at multiple locations in Mumbai linked to Future Retail’s promoters and directors. Investigators recovered and seized documents considered relevant to the case.
The agency has said that the investigation will examine the alleged conspiracy, identify the individuals involved and trace how the borrowed funds were ultimately used.
How the Alleged ₹904 Crore Bank Fraud Took Place
The allegations centre on credit facilities obtained by Future Retail from SBI and a consortium of nine banks. These facilities reportedly included working capital arrangements, term loans and letters of credit.
According to the CBI’s account of SBI’s complaint, the company allegedly failed to use the borrowed money for the purposes approved by the lenders. Instead, funds were allegedly transferred through associate companies and connected entities, resulting in losses to the bank.
The investigation is also examining whether transactions were structured to obscure the movement and final destination of the money.
This distinction is important because the case is not simply about a company failing to repay a loan. The allegations concern the alleged use of funds for purposes other than those approved by the lender, alongside suspected financial-record manipulation.
The CBI is expected to examine the transaction trail, financial records and documents recovered during the searches to establish whether the allegations are supported by evidence.
Forensic Audit Flags Transactions Worth Thousands of Crores
A key part of SBI’s complaint is a forensic audit conducted by BDO India LLP. The audit covered the period from April 1, 2017, to April 30, 2022, and examined Future Retail’s financial transactions and dealings with related and connected entities.
According to The Economic Times’ report on the FIR and SBI complaint, the audit identified 13 related and connected entities to which Future Retail made net payments of ₹5,878.28 crore during the review period.
The gross payments to these entities reportedly stood at ₹24,002.09 crore, while receipts from them amounted to ₹18,123.79 crore.
The audit also identified net payments of ₹1,263.68 crore to nine connected and related entities. SBI’s complaint reportedly questioned whether the financial capacity and reported revenues of these entities were proportionate to the amounts they received.
These figures are among the transactions being examined in the case. They should not be interpreted as separate proven fraud amounts or added together to calculate the alleged ₹904.32 crore loss. The CBI investigation will need to establish which transactions were improper and how they relate to the bank’s claimed loss.
₹606 Crore Loan to Syntex Trading Also Under Scrutiny
One transaction highlighted in the complaint involved Syntex Trading & Agency Pvt Ltd, a group company of Future Retail.
According to the forensic audit details reported by The Economic Times, Future Retail extended loans worth ₹606.60 crore to Syntex during FY20.
Syntex’s short-term loans and advances reportedly increased from ₹8.37 crore as of March 31, 2019, to ₹850.14 crore as of March 31, 2021.
The complaint alleged that the increase indicated that money received from Future Retail may have been used to provide further loans and advances to other group entities instead of supporting legitimate business operations.
Investigators are examining the movement of funds between the companies and whether the transactions had a genuine commercial purpose. The final findings will depend on the evidence gathered during the investigation.
Audit Raises Questions About Security Deposits and Supplier Advances
The forensic audit also reportedly identified differences between certain financial figures disclosed by Future Retail and changes in its operating business.
One area involved security deposits. The company’s reported security deposits increased from ₹1,938.35 crore in FY19 to ₹4,406.17 crore in FY20. During the same period, its store count reportedly declined from 1,511 to 1,350.
The audit also flagged a sharp rise in supplier advances. These increased from ₹530.28 crore in FY17 to ₹3,089.22 crore in FY21, even as purchases reportedly declined from ₹13,212.92 crore to ₹3,765.30 crore.
| Financial metric | Earlier figure | Later figure |
|---|---|---|
| Security deposits | ₹1,938.35 crore (FY19) | ₹4,406.17 crore (FY20) |
| Store count | 1,511 (FY19) | 1,350 (FY20) |
| Supplier advances | ₹530.28 crore (FY17) | ₹3,089.22 crore (FY21) |
| Purchases | ₹13,212.92 crore (FY17) | ₹3,765.30 crore (FY21) |
These figures were cited in reporting on the forensic audit and SBI’s complaint. They represent issues flagged for examination, rather than independent judicial findings that the transactions were fraudulent.
The CBI’s investigation will have to establish the purpose of the payments, the identity of the recipients and whether the accounting records accurately reflected the underlying transactions.
Future Retail’s Loan Account Became an NPA in 2021
The case also relates to the deterioration of Future Retail’s borrowing position. According to The Economic Times, the company’s loan account was classified as a non-performing asset retrospectively from April 26, 2021.
SBI’s Fraud Identification Committee subsequently declared the account a fraud account on March 23, 2026.
The classification of a loan account as a non-performing asset indicates that repayment obligations have not been met according to the applicable banking rules. A bank’s decision to classify an account as fraudulent is a separate process and does not, by itself, establish criminal guilt.
The CBI case now moves the matter into a criminal investigation. The agency will examine the allegations, the forensic audit findings and the evidence recovered during searches.
What Happened to Future Retail?
Future Retail was once among India’s major organised retail companies. Its business included large-format hypermarkets and supermarkets operating under well-known retail brands such as Big Bazaar, Fashion@Big Bazaar and Foodhall.
The company also sold fast-moving consumer goods and fashion products through its retail network. Its business model depended on physical stores, supplier relationships, inventory financing and access to working capital.
However, the company faced severe financial and operational difficulties. Its insolvency proceedings eventually resulted in its admission for liquidation by the National Company Law Tribunal, as reported by India Today.
The latest CBI case adds another legal and financial development to the company’s history. It also places the spotlight on the transactions undertaken during the period covered by the forensic audit.
For lenders, the investigation is relevant because it concerns the movement of funds extended to a large retail business and the alleged use of connected entities in those transactions.
What Happens Next in the CBI Investigation?
The CBI is expected to examine the documents seized during the Mumbai searches, review the company’s financial records and trace the flow of funds through the entities identified in SBI’s complaint.
The investigation will also seek to establish the individual roles of the people named in the FIR and determine whether any public servants or other private individuals were involved.
The agency may take further investigative steps depending on the evidence it gathers. These could include examining financial records, questioning individuals and investigating the business purpose of transactions between Future Retail and connected companies.
At this stage, the registration of an FIR and the seizure of documents do not amount to a conviction. The allegations against the company and the individuals named in the case remain subject to investigation and legal proceedings.
The Bigger Picture
The Future Retail case highlights the risks that can arise when large corporate borrowers have extensive financial relationships with associate companies and connected entities. For banks, tracing the end-use of loans is an important part of credit monitoring, particularly when funds move through multiple businesses.
The case also illustrates the role forensic audits can play in identifying unusual financial patterns. Large payments, rising advances and changes in reported deposits may warrant further examination, but each transaction must be assessed in its commercial and accounting context before conclusions can be drawn.
For India’s banking sector, the investigation will be watched for its findings on how the alleged transactions occurred, how the lender identified the suspected irregularities and whether the money can be traced through the relevant entities.
Frequently Asked Questions
1. Why has the CBI registered a case against Future Retail?
The CBI registered the case following a complaint from SBI alleging that Future Retail and individuals associated with the company caused a wrongful loss of ₹904.32 crore through the alleged diversion of loan funds and related financial irregularities.
2. How much money is involved in the Future Retail bank fraud case?
The alleged loss to SBI is ₹904.32 crore, according to the CBI’s FIR.
3. Who has been named in the CBI case?
The FIR names Future Retail Ltd, its promoters and directors Kishore Biyani and Rakesh Biyani, along with unidentified public servants and other individuals.
4. Why did the CBI search premises linked to the Biyanis?
The agency conducted searches to collect documents relevant to the investigation. The searches followed the registration of the FIR and were linked to allegations of loan-fund diversion and suspected financial irregularities.
5. What did the forensic audit find?
The forensic audit reportedly flagged transactions involving related and connected entities, loans to Syntex Trading & Agency, changes in security deposits and supplier advances, and other accounting discrepancies. These findings were cited in SBI’s complaint.
6. Has Kishore Biyani been found guilty?
No. The CBI has registered a case and is investigating the allegations. The claims have not been established in court, and the registration of an FIR does not amount to a conviction.
Looking Ahead
The next stage of the Future Retail case will depend on the CBI’s examination of the seized documents, financial records and transactions involving the companies identified in SBI’s complaint. Investigators will need to establish how the credit facilities were used, whether funds were diverted and what roles the individuals named in the FIR may have played.
The investigation could provide further clarity on the alleged ₹904.32 crore loss and the financial dealings that led to SBI’s complaint. Until the agency completes its investigation and the matter is tested through legal proceedings, the allegations against Future Retail and the Biyani brothers must be treated as allegations rather than established facts.
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