Former ICICI Bank CEO and MD, Chanda Kochhar, has moved the Bombay High Court challenging her ex-employer's decision to terminate her when the bank had approved her request for early retirement. ICICI Bank's board had taken the decision earlier this year and took back all the bonuses and stock options paid to her between April 2009 and March 2018.
Kochhar told the court that Sandeep Bakshi who was chosen as her successor was given the post only after the ICICI Bank had approved her request for early retirement, the Economic Times reported.
She emphasised that the bank approved her retirement request in October 2018 and also issued her a termination letter in February 2019. Kochhar, in her, petition also challenged the 'purported termination' and refusal of the approved compensation, sources told the news daily.
Seeking the court's intervention, she called her termination "illegal, untenable, and unsustainable in law". Meanwhile, the two-judge division bench of Justice Ranjit More and Justice MS Karnik has posted the matter for hearing on December 2.
"She (Kochhar) has filed a writ petition against the bank for terminating her service without prior approval from the Reserve Bank of India (RBI) in breach of a statutory obligation. The bank took this step after having accepted her request for early retirement with effect from October 4, 2018, by the board of the bank," one of the sources told the news daily.
In January this year, Justice (retd) BN Srikrishna Committee, set up to probe quid pro quo link in the Rs 3,250 crore loan given to Videocon, found that Kochhar worked in violation of the ICICI Bank's Code of Conduct.
The report, which was discussed in the ICICI Bank board meeting that month, found her role in violation of the bank's "framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations".