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, November 6.

Source: IANS via Hi India

According to the CBI, the case has been registered against FRL, its promoters, managing directors, executive directors and guarantors, along with unknown public servants and other unidentified persons, on charges of criminal conspiracy, cheating and offences under the Prevention of Corruption Act. The complaint was filed by SBI's Stressed Assets Management Branch-III in Mumbai, according to reports of the agency's statement.

Source: PTI via The India Cover

The agency has 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. The company had availed credit facilities from SBI's Commercial Branch in Fort, Mumbai, the reports said. These are allegations set out in the complaint and the FIR; they have not been tested in court and no guilt has been established.

Following the registration of the FIR on November 4, CBI teams 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, the CBI said.

Future Retail, the company behind the Big Bazaar retail chain founded by Kishore Biyani, was once among India's largest retailers. There was no immediate response from the company or the Biyani family to the CBI action in the reports available at the time of publication.