Mumbai, Nov 6 (IANS) The Central Bureau of Investigation (CBI) has registered a bank fraud case against Future Retail Ltd. (FRL), its promoters and directors, including Kishore Biyani and Rakesh Biyani, on a complaint filed by the State Bank of India (SBI), alleging a wrongful loss of Rs 904.32 crore to the bank, officials said on Friday.
According to the CBI, the case has been registered against FRL, its promoters, managing directors, executive directors, guarantors, unknown public servants and other unidentified persons on charges of criminal conspiracy, cheating, and offences under the Prevention of Corruption Act.
The agency alleged that the accused entered into a criminal conspiracy and secured various credit facilities, including working capital loans, term loans and letters of credit, from SBI and a consortium of nine banks.
FRL operated multiple retail formats, including Big Bazaar, Fashion@Big Bazaar and Foodhall, and was also engaged in the trading of FMCG and fashion products through its retail network.
The company had availed credit facilities from SBI’s Commercial Branch in Fort, Mumbai.
According to the complaint, the funds were not utilised for the purposes for which they were sanctioned.
Investigators alleged that part of the money was diverted and siphoned off through associate companies and connected entities, causing substantial losses to the bank.
Following the registration of the FIR on November 4, the CBI conducted searches on Friday, November 6 at multiple premises linked to FRL’s promoters and directors in Mumbai.
The agency said several documents relevant to the investigation were recovered and seized during the searches.
The investigation is underway to determine the full scope of the alleged conspiracy, identify the roles of all individuals involved, including public servants and private entities, and trace the end use of the loan funds.
–IANS
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