Mumbai: CBI conducted searches at multiple locations on Friday, two days after registering a bank fraud case against Future Retail Ltd (FRL), its promoters Kishore Biyani, Rakesh Biyani and others, alleging that they defaulted on SBI loan payments and caused a Rs 904 crore loss to the bank.CBI said that it searched premises linked to the promoters and directors of FRL in Mumbai and seized documents relevant to the investigation during the process. CBI alleged that the company availed a credit facility from SBI, Commercial Branch, Fort, Mumbai and defrauded the bank by not utilising the bank funds for the intended purpose for which it was sanctioned. CBI said that the company had diverted the funds by siphoning them off through associate companies.The SBI loan turned an NPA in April 2021, and in a forensic audit of the company’s account, the bank found the alleged fraud. The audit also found the manipulation of accounting records, falsification of books of account, layering of financial transactions through connected entities and that the company concealed its financial position to cheat the bank, said the CBI FIR.Last month, SBI submitted a written complaint to CBI requesting to register a bank loan fraud case.The company operated through multiple retail formats across hypermarkets, supermarkets like Big Bazaar, Fashion@Big Bazaar, Foodhall, among others. It was also engaged in general trading of FMCG and fashion goods through the stores operated by it.The CBI alleged that the company had not used the loan for the purpose it was obtained for and siphoned off the money with the help of associates.
