The Central Bureau of Investigation (CBI) has recently revealed that ICICI Bank, a prominent financial institution, has granted the agency the necessary sanction to prosecute its former Managing Director and Chief Executive Officer, Chanda Kochhar. The case pertains to allegations of irregularities surrounding loans granted to six companies affiliated with the Videocon Group, which was promoted by Venugopal Dhoot.
ICICI Bank Provides Sanction for Prosecution
The CBI informed a special court that ICICI Bank has given its approval to prosecute its former MD and CEO, Chanda Kochhar. The bank's board of directors sent a resolution to the agency, which was subsequently received on May 15. The CBI requested the inclusion of this sanction in the recently filed chargesheet related to the case.
Alleged Irregularities and Acknowledgment
The CBI officer disclosed that the ICICI Bank board recognized the possibility of "quid pro quo" in the approval of loans to the Videocon Group companies. However, it was emphasized that no financial loss was incurred by the bank as a result of these credit facilities. The investigation centers around rupee term loans amounting to ₹1,875 crore, which were later reduced to ₹1,730 crore after restructuring.
Also Read: CBI detains Top Builder in INR 280 Crore Bank Loan Fraud Case
Chanda Kochhar's Role and Unjustified Transfers
During Kochhar's tenure as MD and CEO, she served on the loan committee that approved two loans, including a ₹300 crore loan to M/s Videocon International Electronics Limited (VIEL) and a ₹750 crore loan to M/s Videocon Industries Limited (VIL). Furthermore, the bank released fixed deposit receipts worth ₹50 crore as security for other group entities without valid justification.
Alleged Kickback and Property Transfer
The CBI alleges that after the disbursement of the ₹300 crore loan to VIEL, Kochhar's husband, Deepak Kochhar, received a kickback of ₹64 crore. The investigation also involves the transfer of a Mumbai flat, valued at around ₹5.25 crore in 1996, to the family trust of the Kochhars. The CBI claims that the flat had been involved in a possession dispute between Videocon Industries Limited and Deepak Kochhar.
Legal Proceedings and Bail Grant
On December 23, 2022, Chanda Kochhar and her husband were arrested by the CBI in Delhi. However, they were granted bail on January 9 by the Bombay High Court, which stated that their arrest had not adhered to legal procedures.
Also Read: CBI Registers Case Against Mumbai-Based Company for Bank Fraud
The granting of sanction by ICICI Bank for the prosecution of Chanda Kochhar in connection with alleged irregularities in loan approvals to Videocon Group companies marks a significant development in the ongoing investigation. The CBI will continue its efforts to ascertain the facts surrounding the case and ensure a fair legal process.
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