Forensic Audit Triggers CBI Investigation into Alleged ₹904-Crore Future Retail Bank Fraud

The Central Bureau of Investigation (CBI) has registered a case against Future Retail Limited (FRL), its promoters Kishore Biyani and Rakesh Biyani, and others in connection with an alleged ₹904.32 crore bank fraud involving the State Bank of India (SBI). The FIR was registered on 4 November 2026 following a complaint by SBI, and the agency subsequently conducted searches at multiple premises linked to the company’s promoters in Mumbai.

The investigation follows a forensic audit conducted by BDO India LLP covering the period from April 2017 to April 2022. The audit examined financial records, inter-company transactions, loans, advances and payments to related and connected entities to identify possible diversion of funds and discrepancies in the company’s accounting records.

According to the findings cited in SBI’s complaint, the audit identified net payments of approximately ₹1,263.68 crore to nine connected and related entities whose financial position and reported revenues were allegedly disproportionate to the amounts received. One transaction involved ₹606.60 crore in loans extended to Syntex Trading and Agency Private Limited during FY 2019–20. Its short-term loans and advances reportedly increased from ₹8.37 crore in March 2019 to ₹850.14 crore in March 2021, raising questions about the subsequent movement of funds.

The audit also highlighted unusual changes in financial records. Security deposits reportedly increased from ₹1,938.35 crore in FY 2018–19 to ₹4,406.17 crore in FY 2019–20, despite a reduction in the company’s store count. Similarly, supplier advances increased from ₹530.28 crore in FY 2016–17 to ₹3,089.22 crore in FY 2020–21, while purchases declined substantially.

These discrepancies illustrate how forensic accounting can identify potential financial irregularities by examining transaction patterns, related-party relationships and inconsistencies between reported business activity and financial movements. Investigators can use bank statements, general ledgers, loan agreements, invoices, corporate filings and beneficiary account details to reconstruct fund flows and establish the commercial purpose of transactions.

The CBI has stated that the investigation will examine the end-use of loan funds, identify the roles of individuals and connected entities, and determine the extent of the alleged conspiracy. The allegations remain subject to investigation and judicial determination.

The case demonstrates the importance of forensic accounting in complex corporate fraud investigations, particularly where financial transactions pass through multiple associated companies. Tracing the complete movement of funds, verifying supporting documentation and identifying the ultimate beneficiaries can help investigators establish whether transactions represent genuine business activity or possible diversion of borrowed funds.