In a set back for former ICICI MD and CEO Chanda Kochhar, the Bombay high court on Monday refused to give an early hearing to her plea challenging the sanction granted by the bank’s board to prosecute her in the ICICI- Videocon loan fraud case.
She has challenged the validity of the prior sanction contending that the same was not as per the proper procedure. The bank granted sanction on May 15, 2023 for her prosecution under the Prevention of Corruption Act over Rs 3200 crore given to the Videocon group when she was at the helm, on a quad pro quo basis.
On Monday, her advocate pointed out that the trial court has directed all the accused to be personally present for framing of charges on July 22. “Framing the charges” is prima facie an order of the court in which the trial judge has formed the opinion, upon consideration of the police report and other documents and after hearing both sides, that there is ground for presuming that the accused has committed the offence concerned.
Additional Solicitor General Devang Vyas, appearing for the CBI, opposed the plea for urgent hearing saying that the advocate can challenge the issue of valid sanction at any point before the trial court.
A bench of Justices Revati Mohite-Dere and Shyam Chandak said it was occupied with hearing petitions from the last decade which needed to be prioritised. The judges asked Kochar’s advocate to seek time from the trial court on the grounds that the petition was pending before the high court.
The central agency had arrested Chanda and Deepak Kochhar and founder of Videocon group Venugopal Dhoot. The CBI FIR names 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.
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.
