Kishore Biyani, Future Retail and the ₹904 crore bank fraud case: What led to the collapse of the group?

Kishore Biyani. File | Photo credit: The Hindu

Recent allegations by the Central Bureau of Investigation (CBI). Future Retail Limited (FRL) Kishore Biyani Promoters and others, for allegedly defrauding the State Bank of India (SBI) of ₹904.32 crore, turned the spotlight back on the embattled leaders. Hailed as India’s consumer leader in the retail sector, Mr Biyani’s leadership guided Future Group’s meteoric rise before mounting financial difficulties drove it into insolvency.

Amidst such complexities, Mr. Biyani’s role as promoter of FRL was marred by a complex legal battle between Amazon and Reliance in 2022. After Reliance backed out of the multi-crore deal, Future Retail had no option but to file a winding-up petition with the National Company Law Tribunal (NCLT) in 2023.

The story so far

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

The bank claimed that the company did not use the sanctioned funds in accordance with the terms of the credit facilities. Instead, portions of the funds were allegedly diverted to affiliates and related entities, raising suspicions of financial irregularities.

Unsuccessful decisions

By the mid-to-late 2000s, Future Group had firmly established itself as the country’s largest retailer, calling it a “hypergrowth” company that would easily ride India’s consumption boom in the coming years, according to a report by The Hindu Businessline. At the time, Mr. Biyani felt that a few more years of protection from foreign competition would allow Indian retailers to grow much bigger and get better valuations when FDI came.

However, according to a Businessline report, if Future Group were to push through the FDI reforms, it would attract several global suitors. A series of partnerships with global firms may have brought cash to further sustain the market. As e-commerce businesses quickly gained traction, Mr. Biyani struggled with his retail business.

Mr. Biyani doubted the financial sustainability of the prevailing e-commerce model and decided instead to open hundreds of new small-format supermarkets. By 2015, Future had taken the leap and operated 218 Bazaar stores, suggesting that stores within two kilometers of every neighborhood in cities catered to consumer needs better than e-commerce giants.

Mr Biyani offered Bharti a 10 per cent stake in the group and a seat on the board of Rajan Bharti Mittal. Future hoped to reach Airtel’s then 250 million subscribers by using Future apps pre-installed on Airtel SIM cards and cross-pollination of customer loyalty programs.

The Amazon-Reliance imbroglio

The company saw staggering losses during the Covid-19 pandemic due to rising logistics prices, warehousing and rental charges. Amidst this, Reliance Retail Ventures Ltd (RRVL) has announced the acquisition of Future Group’s retail, wholesale, logistics and warehousing businesses. According to an August 2020 announcement, Reliance entities were to acquire the retail and warehouse assets of Future Group for ₹24,713 crore. In addition, Reliance was to invest an additional ₹2,800 crore in Future Enterprises for a 13% stake.

This was vehemently opposed by US-based e-commerce major Amazon, claiming that it breached the contractual arrangements made when it invested in promoter entity Future Group in 2019.

Unfortunately, the deal with Reliance later fell apart after Future Group’s secured lenders raised legal objections to the proposed transaction and uncertainty over the prospect of the transaction.

Also Read: Reliance to control about 200 future retail outlets and offer jobs to employees

However, amid the legal battle between Amazon and Future Group, the owners of a large number of stores have reportedly approached Reliance to transfer the leases to its name (Reliance) as Future was unable to pay the rent. The Reliance branch took over the stores. However, Future Group called it a “hostile takeover by Reliance to acquire assets without paying an agreed amount”.

Published – November 8, 2026 11:39 AM IST