ICICI Bank has filed a civil recovery suit against former Chief Executive Officer Chanda Kochhar for the recovery of Rs 12 crore that she had received as bonus and other benefits during her tenure. Kochhar's counsel Vikram Nankani along with Sujay Kantawala informed the court that the bank has initiated a civil suit that could further complicate the case.
The bank had said on Monday that Kochhar had entered into an agreement with the lender that allowed them to seek return of the variable pay in case of integrity breach. "The petitioner's conduct has caused substantial embarrassment to the bank and all the stake-holders, and has led to irreparable reputational loss to the bank," the ICICI peition said.
Abhijit Joshi-led law firm Veritas Legal filed the civil suit on January 10. Meanwhile, Kochhar filed a case against the bank seeking time to file her response in reply to ICICI Bank, as mentioned in a report in The Economic Times. Kochhar had filed a case against ICICI Bank for terminating her employment after it accepted her request for early retirement.
The division bench allowed a week's time and had adjourned the case to January 20.
ICICI Bank had responded to a case filed by Kochhar stating that it is a private bank administered by a board of directors and that Kochhar's plea is not maintainable. The bank had said that Kochhar's termination was due to lack of disclosures. It said that she showed lack of diligence with respect to annual disclosures.
Chanda Kochhar is accused of playing a role in granting out-of-turn loans of Rs 3,250 crore to Videocon Group, benefitting her husband Deepak Kochhar. The Enforcement Directorate is probing the case against Kochhar for sanctioning the loans. Her husband's company allegedly received kickbacks from Videocon in lieu of the loans from ICICI Bank.