Who is Kishore Biyani? CBI books Future Retail founder, brother in alleged ₹904-crore SBI loan fraud case
The Central Bureau of Investigation (CBI) has registered a case against Future Retail Ltd and its promoters, Kishore Biyani and his brother Rakesh Biyani, over an alleged bank fraud of ₹904.32 crore involving the State Bank of India (SBI), PTI reported.
The agency conducted searches at multiple premises linked to Kishore Biyani in Mumbai on Friday, November 6, and seized documents relevant to the investigation, officials said, as per PTI.
According to the CBI, the FIR was registered on November 4 following a complaint by SBI's Stressed Assets Management Branch-III in Mumbai.
The case names Future Retail, its promoters, managing directors, executive directors and guarantors, along with unidentified public servants and other individuals.
The accused have been booked for alleged criminal conspiracy and cheating, along with offences under the Prevention of Corruption Act.
In a statement, the CBI said the alleged fraud caused a wrongful loss of ₹904.32 crore to the complainant bank.
According to the PTI report citing CBI officials, SBI's complaint alleged that the accused entered into a criminal conspiracy to obtain credit facilities from the bank and a consortium of nine lenders.
The agency alleged that Future Retail did not use the borrowed funds for the purposes for which they were sanctioned.
Instead, the money was allegedly diverted and siphoned off through associate companies and connected entities, resulting in losses to the lending banks.
The CBI said it recovered and seized documents relevant to the case during searches at multiple locations in Mumbai.
The agency is also examining the possible involvement of public servants and private individuals and seeking to establish how the funds were ultimately used, as per the report.
Kishore Biyani is an Indian businessman widely known as the 'Father of Indian Retail' for his role in developing organised retail in the country. He founded the Future Group, which grew into one of India's prominent retail businesses.
Born on August 9, 1961, in Mumbai, Biyani built his business around bringing modern retail formats to India's growing middle-class consumers.
He began his entrepreneurial journey in the fashion business and established Pantaloons in 1987. The brand expanded from a small clothing venture into a major fashion retail chain.
Biyani's biggest breakthrough came with the launch of Big Bazaar in 2001. The hypermarket chain became one of India's most recognisable retail brands, offering groceries, clothing, household products and other consumer goods under one roof.
He subsequently expanded the Future Group's presence through several retail formats and brands, including Central, Foodhall and Fashion@Big Bazaar.
Future Retail operated several retail formats, including hypermarkets and supermarkets such as Big Bazaar, Fashion@Big Bazaar and Foodhall.
The company was also involved in the trading of fast-moving consumer goods (FMCG), fashion products and other merchandise through its stores.
Its business model focused on catering to mass-market consumers through large-format stores offering a wide range of products under one roof.
However, Future Retail faced severe financial difficulties amid mounting debt and liquidity pressures. Its financial troubles eventually led to insolvency proceedings and the collapse of its retail operations.
The CBI's investigation will focus on the alleged diversion of bank loans, the movement of funds through associated companies and the involvement of individuals and entities connected with Future Retail, as per the report.
The agency will also reportedly examine whether public servants were involved in the alleged conspiracy.
The investigation is ongoing. The allegations against the accused are yet to be established in court.
With inputs from PTI
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