ICICI Bank-Videocon loan fraud case: Lender's board gives approval to prosecute Chanda Kochhar

The ICICI Bank board has given its approval to prosecute Chanda Kochhar, former CEO and MD of the lender, accused of cheating and quid pro quo in loans sanctioned to Videocon Group companies, helmed by Venugopal Dhoot. The Central Bureau of Investigation (CBI) which is investigating the case told a special court that it had received the nod from the bank’s board. 

The board’s approval is required as a bank employee is considered to be a public servant. As per the Prevention of Corruption Act, the sanctioning authority, in this case the board, is required to consider the evidence and then make a decision. 

The CBI, represented at the court by special prosecutor A Limosin, said that the ICICI Bank board passed a resolution on April 22 and gave its sanction to prosecute Kochhar, accepting that there seemed to be quid pro quo.

Chanda Kochhar and her husband Deepak Kochhar were arrested in December last year by the central probe agency in connection with the case. However, the Bombay High Court granted them interim bail and rebuked the CBI for making the arrest in a “casual and mechanical” manner and with no application of mind. Videocon Group founder Venugopal Dhoot was also arrested, and then granted interim bail. 

The CBI alleged that Kochhar abused her official position in disbursing loans to Videocon, a day after her husband’s firm received Rs 64 crore from the company. In 2022, the CBI while arresting Kochhar, had said that it was probing a wrongful loss of Rs 1,730 crore to ICICI Bank through six loan transactions, two of which were approved by a sanctioning committee of which Chanda Kochhar was a part. Kochhar’s lawyer argued that the lender wrote to the agency stating no wrongful loss to the bank. 

Along with the Kochhars and Dhoot, CBI also named the companies Nupower Renewables (NRL) managed by Deepak Kochhar, Supreme Energy, Videocon International Electronics Ltd and Videocon Industries Limited, as accused in the First Information Report (FIR). The CBI has alleged that ICICI Bank had sanctioned credit facilities to the tune of Rs 3,250 crore to the companies of Videocon Group promoted by Dhoot in violation of the Banking Regulation Act, RBI guidelines, and credit policy of the bank.

(With PTI inputs)

Also read: ICICI-Videocon Loan Case: Chargesheet filed by CBI against Chanda Kochhar, Deepak Kochhar, and Venugopal Dhoot

Also read: ICICI-Videocon loan fraud case: Chanda Kochhar, husband Deepak released from jail