No charges for former Tesco boss in accounting scandal

Mr Clarke’s law firm Corker Binning has been notified by the SFO that there is “insufficient evidence to provide a realistic prospect of conviction” for his alleged role in the case, the Financial Times reported.

In 2014, Tesco was found to have inflated its profits by £263 million, later revised up to £326m.

The move means it is less likely that the company will face prosecution as, according to UK corporate liability law, a “directing mind” must be shown to have overseen a fraud.

Three former Tesco executives have been charged with fraud by the SFO.

Carl Rogberg, Chris Bush and John Scouler - the supermarket’s former finance chief, managing director and food commercial head respectively - will face a trial in 2017 and could be handed lengthy jail sentences if convicted.

The SFO has charged the men with one count of Fraud by Abuse of Position, which carries a maximum sentence of 10 years, and one count of False Accounting, which carries seven years.

Tesco is also facing legal action from a group of 125 large investors who claim to have lost “well in excess of £100 million” as a result of the accounting scandal.