SEBI investigation into Future Retail Limited limited to securities law compliance

This order addresses SEBI's investigation into Future Retail Limited (FRL) regarding alleged misleading disclosures, non-disclosure of related party transactions, understatement of debt, and diversion of funds by its promoters and key managerial personnel.

Mr. Kishore Biyani, Mr. Rakesh Biyani, Mr. C.P. Toshniwal, Mr. Virendra Samani, Ms. Gagan Singh, Mr. Ravindra Dhariwal, Ms. Sridevi Badiga, Mr. Ashok Trivedi, Mr. Ravi Ajwani, Mr. Lokesh Khandelia, Mr. Raghav Kalyani, and Future Retail Limited (FRL).

• SEBI initiated an investigation in June 2022 to ascertain if FRL's books were manipulated or funds diverted by promoters for FYs 2019-20 and 2021-22.
• A Forensic Audit Report (FAR) dated March 22, 2024, and an Investigation Report (IR) dated March 28, 2024, were submitted to SEBI.
• SEBI issued a Show Cause Notice (SCN) on July 18, 2024, alleging violations of the SEBI Act, PFUTP Regulations, and LODR Regulations.
• Settlement applications filed by Noticees No. 1, 2, 3, and 4 were rejected by SEBI's Whole Time Members panel on January 01, 2026.
• The order covers findings on misleading disclosures regarding Related Party Transactions, debt/liability, the Scheme of Arrangement with Reliance Group, and diversion of funds.
• FRL was admitted into Corporate Insolvency Resolution Process (CIRP) by the NCLT on July 20, 2022, and is currently in liquidation.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document