ICICI Bank Loan Scam: Chanda Kochhar Challenges Sanction For Prosecution In Bombay High Court

Chanda Kochhar, the former CEO and MD of ICICI Bank, has approached the Bombay High Court challenging the sanction granted by the bank’s board to prosecute her contending that the proper procedure was not followed while granting sanction. Kochhar and her husband Deepak were arrested by the Central Bureau of Investigation (CBI) in December 2022 in connection with the alleged ICICI-Videocon quid pro quo loan scam. The agency alleged cheating and irregularities in loans sanctioned by the bank to Videocon Group companies.

The board of the ICICI Bank adopted a resolution on April 22 granting sanction to prosecute Kochhar while accepting that there seemed to be a quid pro-quo. The CBI had informed the special court in June about the prosecution sanction given by the bank’s board.

Kochhar's lawyer alleges bank did not follow proper procedure

Kochhars’ counsel Amit Desai submitted that no loss was caused to the bank. He also submitted that the bank did not follow proper procedure while granting sanction to prosecute the former MD and CEO.

CBI counsel Kuldeep Patil sought time to file reply to Kochhar’s plea.

Bench grants CBI time till January 5, 2024

A division bench of Justices PD Naik and NR Borkar on Monday granted time to the CBI till January 5, 2024, to file its reply.

The central agency had arrested Chanda and Deepak Kochhar and founder of Videocon group Venugopal Dhoot. The HC, while granting bail to Kochhars had come down heavily on the CBI for making the arrest in a “casual and mechanical” manner and without application of mind. Dhoot was also subsequently granted interim bail.

The CBI, in its FIR, named Kochhars and Dhoot, along with companies Nupower Renewables (NRL) managed by Deepak Kochhar, Supreme Energy, Videocon International Electronics Ltd and Videocon Industries Limited, as accused. The case was filed under various sections of the Indian Penal Code (IPC) related to criminal conspiracy and provisions of the Prevention of Corruption Act in 2019.

According to the CBI, ICICI Bank 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.