CBI searches Mumbai premises linked to Kishore Biyani in bank fraud case

The CBI has registered an FIR against Future Retail, Kishore Biyani and his brother Rakesh Biyani in an alleged Rs 904.32-crore bank fraud. The agency conducted searches at multiple premises linked to Biyani in Mumbai on Friday

New Delhi: The CBI has registered an FIR against Future Retail Ltd and its promoter Kishore Biyani in an alleged bank fraud involving Rs 904.32 crore and conducted searches at premises linked to him in Mumbai on Friday, officials said.

The CBI has also booked his brother, Rakesh Biyani, in the case, which involves charges of criminal conspiracy to cheat and offences under the Prevention of Corruption Act, they said.

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“The Central Bureau of Investigation (CBI) has registered a case on the complaint of the State Bank of India, Stressed Assets Management Branch-III, Mumbai, against M/s Future Retail Ltd (M/s FRL) and its promoters, managing directors, executive directors and guarantors, namely (i) Kishore Biyani, (ii) Rakesh Biyani, unknown public servants and unknown others, for offences of criminal conspiracy to cheat and offences under the Prevention of Corruption Act, resulting in an alleged wrongful loss of Rs 904.32 crore to the complainant bank,” a CBI spokesperson said in a statement.

No immediate reaction was available from the company.

The CBI alleged that, according to a complaint filed by SBI, the accused persons had entered into a criminal conspiracy to obtain credit facilities from the State Bank of India and a consortium of nine banks.

Future Retail operated multiple retail formats, including hypermarkets and supermarkets such as Big Bazaar, Fashion@Big Bazaar and Foodhall. It was also engaged in the general trading of FMCG and fashion goods through its stores, the statement said.

The CBI alleged that the company did not use the bank funds for the purposes for which they had been sanctioned.

“It is further alleged that the company diverted the funds by siphoning them off through associate companies/connected entities and caused loss to the bank,” the statement said.

The agency registered the FIR on November 4 and conducted searches at multiple premises in Mumbai.

“Incriminating documents relevant to the investigation were recovered and seized during the searches,” the CBI spokesperson said.

The probe is underway to ascertain the full extent of the alleged conspiracy, identify the roles of all those involved, including public servants and private individuals, and trace the end-use of the loan funds, she said.