MUMBAI: The Central Bureau of Investigation (CBI) has registered an FIR against Future Retail Ltd and its promoter Kishore Biyani in an alleged bank fraud case involving Rs 904.32 crore and conducted searches at premises linked to the company's promoters and directors in Mumbai on Friday (November 06), officials said.
The case was registered on November 4 following a complaint from the State Bank of India's (SBI) Stressed Assets Management Branch-III in Mumbai. Besides Kishore Biyani, the agency has named his brother Rakesh Biyani, unidentified public servants and others in the case. The accused have been booked on charges of criminal conspiracy and cheating, along with offences under the Prevention of Corruption Act.
The CBI spokesperson said the case involved an alleged wrongful loss of Rs 904.32 crore to the complainant bank.
According to the agency, the SBI complaint alleged that the accused entered into a criminal conspiracy to obtain credit facilities from the bank as well as a consortium of nine lenders. The company allegedly failed to use the funds for the purposes for which they were sanctioned and diverted the money by siphoning it off through associate companies and connected entities.
Future Retail operated several retail formats, including hypermarkets and supermarkets such as Big Bazaar, Fashion@Big Bazaar and Foodhall. It was also involved in the general trading of fast-moving consumer goods (FMCG) and fashion products through its stores.
The CBI conducted searches at multiple premises in Mumbai on Friday and seized documents relevant to the investigation, the spokesperson said.
The agency is investigating the alleged conspiracy, examining the roles of those involved, including public servants and private individuals, and tracing how the loan funds were used.
There was no immediate response from the company. (with inputs from PTI)