Kishore Biyani, Future Retail and the ₹904-crore bank fraud case: What led to the Group’s collapse?

The Central Bureau of Investigation’s (CBI) recent charges against Future Retail Limited (FRL) promoters Kishore Biyani and others, for allegedly defrauding the State Bank of India (SBI) of ₹904.32 crore, has turned the spotlight again on the beleaguered leaders. Hailed as an industry leader in driving India’s consumption in retail sector, Mr. Biyani’s leadership steered Future Group’s meteoric rise before mounting financial troubles pushed it into insolvency.

Amid such complexities, Mr. Biyani’s role as FRL’s promoter was marred by a complex legal battle between Amazon and Reliance in 2022. After Reliance backed out of the deal running into thousands of crores, Future Retail had no option but to file for liquidation before the National Company Law Tribunal (NCLT) in 2023.

The story so far

The CBI conducted searches at multiple premises linked to the company’s promoters and directors in Mumbai on Friday (November 6, 2026), and seized documents relevant to the investigation. The case was registered following a complaint filed by SBI’s Stressed Assets Management Branch-III in Mumbai.

The bank alleged that the company failed to utilise the sanctioned funds in accordance with the terms and conditions of the loan facilities. Instead, portions of the funds were allegedly diverted to associate companies and related entities, raising suspicions of financial irregularities.

Failed decisions

During the mid- to late-2000s, Future Group was firmly established as the country’s largest retailer and dubbed a “hypergrowth” company that would easily ride India’s consumption boom for years to come, as per a The Hindu Businessline report. At the time, Mr. Biyani felt a few more years of protection from foreign competition would allow Indian retailers to grow much bigger and command better valuations when FDI came in.

However, according to the Businessline report, if the Future Group had pushed for FDI reforms, it would have attracted several global suitors. A series of partnerships with global firms may have infused cash to sustain further in the market. As e-commerce businesses quickly gained traction, Mr. Biyani struggled with his retail business.

Doubtful about the financial sustainability of the prevailing e-commerce model, Mr. Biyani opted instead to open hundreds of new small-format supermarkets. By 2015, Future took a leap and operated 218 Bazaar stores, proposing that stores within a two-kilometre radius of every neighbourhood in cities would cater to the consumer’s needs better than e-commerce giants.

Mr. Biyani offered Bharti a 10 per cent stake in the group and a seat on the board to Rajan Bharti Mittal. Future hoped to tap into Airtel’s then 250 million subscribers with Future apps preloaded on Airtel SIM cards and crosspollinate customer loyalty programmes.

Amazon-Reliance Imbroglio

The company recorded staggering losses during the Covid-19 pandemic due to rising logistical price, warehouse management, and rent dues. Amid this, Reliance Retail Ventures Ltd’s (RRVL) announced the acquisition of Future Group’s retail, wholesale, logistics and warehousing businesses. As per an announcement made in August 2020, entities of Reliance were to acquire retail and warehousing assets of the Future Group for ₹24,713 crore. Alongside, Reliance was to invest a further ₹2,800 crore in Future Enterprises for a 13% stake.

This was vehemently opposed by U.S.-based e-commerce major Amazon, claiming that it violated contractual arrangements made when it invested in Future Group’s promoter entity in 2019.

Unfortunately, the deal with Reliance fell apart later after secured creditors of the Future Group cited legal challenges to the proposed transaction and the lack of clarity over the outlook for the deal.

Also Read : Reliance takes control of about 200 Future Retail stores, offers jobs to staff

However, amid the legal battle between Amazon and Future Group, landlords of a large number of stores had reportedly approached Reliance to get the lease agreements transferred to its (Reliance) name as Future was unable to pay the rents. The Reliance arm took over the stores. But the Future Group termed that it was a “hostile takeover by Reliance to acquire the assets by not paying the agreed-upon amount”.