New Delhi: Big Bazaar, Fashion@Big Bazaar, Foodhall. The company behind retail brands that once defined Indian high streets is now the subject of a central agency case.
The CBI has registered a bank fraud case involving Rs 904 crore against Mumbai-based Future Retail Ltd and its top leadership, including key promoters Kishore Biyani and Rakesh Biyani, over alleged diversion and siphoning of funds.
The case, registered on November 4, also names unknown public servants and unidentified persons, under charges of criminal conspiracy, cheating and violations of the Prevention of Corruption Act.
It began with a complaint from State Bank of India's Stressed Assets Management Branch-III in Mumbai.
According to the CBI, the retail company and its executives entered into a criminal conspiracy to obtain extensive credit facilities — working capital loans, term loans and letters of credit — from SBI's Commercial Branch in Fort, Mumbai, and from a consortium of nine participating banks.
The agency's initial findings say the company wilfully failed to use the sanctioned funds for their intended commercial purposes. Instead, the money was allegedly siphoned and diverted through a network of associate companies and connected entities, causing a loss of Rs 904.3 crore to the complainant bank and its consortium partners.
After the case was registered, the Enforcement Directorate conducted coordinated searches at multiple premises in Mumbai linked to the company's promoters and directors, and seized documents.
The allegations have not been established and the matter is before the courts.
The CBI said its investigation aims to uncover the full extent of the conspiracy, establish the role of each person involved, including private individuals and public servants, and trace where the diverted loan funds finally went.
Future Retail has not issued a public response to the case.
The company's debt has been a running question for several years, and the outcome will matter to lenders and suppliers across the retail trade.
The next stage of the probe will examine the role of bank officials and the route the money took.