ICICI Bank to conduct independent probe into whistle-blower's allegations against Chanda Kochhar

The ICICI Bank on Wednesday said that it would initiate an enquiry into the allegations of 'conflict of interest' levelled by a whistle-blower against Chanda Kochhar, Managing Director and Chief Executive Officer of ICICI Bank, in a loan case worth over Rs 3,800 crore to Videocon. Market regulatory body Sebi (Securities and Exchange Board of India) had also sent a notice regarding the allegations to Chanda Kochhar on May 25, to which the bank said it would submit an "appropriate response" in the matter.

ICICI Bank, in a regulatory filing, said the enquiry would be headed by an "independent and credible person" to examine the complaint. "The scope of the enquiry would be comprehensive and would include all relevant matters arising out of and in the course of examination of the facts and, where ever warranted, the use of forensic or email reviews and recordal of statements of relevant personnel, etc," the bank statement said. It also added the probe would cover all connected matters in the course of the investigation to bring the matter to a final close.

ICICI Bank has also asked its Audit Committee to take all further actions in the matter to operationalise this decision, including the appointment of an independent and credible person as the head of the enquiry, determining the terms of the reference of the enquiry, the period which will be covered by the enquiry, etc. The Audit Committee will also make necessary arrangements to assist the enquiry with independent legal and other profession support.

The country's second-largest private lender has been embroiled in controversies ever since investor and whistle-blower Arvind Gupta alleged a 'quid pro quo' in ICICI Bank's Rs 3,250 crore plus Rs 660 crore loans to Venugopal Dhoot-owned Videocon Industries. He had alleged that it was the time when an identical 10 per cent foreign funding (Rs 325 crore and Rs 66 crore) made its way to NuPower Renewables, a company co-founded by Chanda Kochhar's husband Deepak Kochhar. The ICICI Bank Board has consistently denied the allegations, saying the loans offered to Videocon were part of a consortium of lenders that extended the facility to Videocon.

Gupta had first levelled allegations in 2016. At that time, ICICI Bank Chairman MK Sharma, in an internal inquiry, had cleared Chanda Kochhar of any wrongdoing charge. The report findings were also shared with the Prime Minister's Office and the CBI. In March, ICICI Bank Chairman MK Sharma had said the board has full confidence in Chanda Kochhar.

The bank even clarified that none of the investors of NuPower Renewables is a borrower of ICICI Bank. Deepak Kochhar, during an interview with India Today TV, had said he had not disclosed his ties with Dhoot to Chanda Kochhar. "Chanda did not know when I set up NuPower. I knew Dhoot through social circles. I told her when Dhoot exited."

Breaking silence on the controversy, Chanda Kochhar, during a press conference on ICICI Bank Q4 results on May 8, said she had nothing more to add as the bank board had made its stand clear on the issue. She added the bank had always co-operated with the regulatory and investigating agencies and would continue to do so.