The Central Bureau of Investigation (CBI) has announced its intention to take action against the former ICICI Bank CEO, Chanda Kochhar, and her husband, Deepak Kochhar, in connection with a high-profile loan fraud case. The couple had been granted interim bail by the Bombay High Court, but the CBI is now moving to cancel it, raising significant legal questions and controversies surrounding their arrest and detention.
The Kochhars had secured bail from the Bombay High Court in January after being apprehended by the CBI on December 23, 2022. However, this decision by the High Court faced strong opposition from the CBI, which contested the order issued on January 9, granting the Kochhars temporary relief. The Supreme Court also raised questions about the CBI's initial failure to object to multiple extensions of the two-week interim bail granted in January.
High Court's Critique
Further controversy arose when the Bombay High Court criticized the CBI's handling of the case, referring to the arrest of the couple as "casual and mechanical." The court granted them interim bail and questioned the legality of their detention. The Kochhars had challenged their arrest, asserting that it was "illegal and arbitrary," and they sought release on bail through an interim order. The High Court eventually ruled in favor of the Kochhars, stating that their arrest did not comply with legal provisions and that the reasons provided in the arrest memos were unacceptable.
The legal battle traces back to May 2018 when ICICI Bank initiated an investigation into Chanda Kochhar following allegations of her involvement in granting out-of-turn loans worth ₹3,250 crore to the Videocon Group, benefiting her husband, Deepak Kochhar. The CBI accused these actions of violating banking regulations and RBI guidelines. Subsequently, Chanda Kochhar took leave and later opted for early retirement, a move that ICICI Bank approved after categorizing it as 'Termination for Cause,' seeking RBI's mandatory approval for her termination under RBI Act provisions.
The Arrests
On December 23, 2022, the CBI arrested the Kochhars, along with Videocon group founder Venugopal Dhoot, who was also implicated in the case. An FIR was filed by the CBI, citing allegations of criminal conspiracy and violations under the Prevention of Corruption Act against Chanda Kochhar, Deepak Kochhar, Dhoot, and several firms. Meanwhile, Nupower Renewables, managed by Deepak Kochhar, found itself named in the FIR. The CBI alleged that Dhoot had invested ₹64 crore in Nupower Renewables through Supreme Energy Pvt Ltd (SEPL) and routed SEPL to Pinnacle Energy Trust, managed by Deepak Kochhar, between 2010 and 2012, suggesting a quid pro quo arrangement.
Legal Defense and Concerns
The Kochhars have argued that no sanction had been obtained from relevant authorities prior to their arrest, as required under provisions of the Prevention of Corruption Act. Chanda Kochhar's legal team also raised concerns about her arrest, stating that it had occurred after a 'perfunctory interrogation' and that a female officer was not present at the time of her arrest, as mandated by law.
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