ICICI Bank approves prosecution of Chanda Kochhar in loan fraud

The ICICI Bank board has granted approval for the prosecution of Chanda Kochhar, the former CEO and MD of the bank. Kochhar is accused of engaging in cheating and quid pro quo practices in relation to loans granted to Videocon Group companies, led by Venugopal Dhoot. The Central Bureau of Investigation (CBI), responsible for investigating the case, informed a special court that it has obtained the necessary consent from the bank's board.

In accordance with the Prevention of Corruption Act, the approval of the bank's board is required due to the employee's status as a public servant. The board is obligated to evaluate the evidence and make a decision on whether to grant sanction for prosecution. The CBI's special prosecutor, A Limosin, stated in court that the ICICI Bank board passed a resolution on April 22, providing consent to prosecute Kochhar and acknowledging the existence of a potential quid pro quo arrangement.

Chanda Kochhar and her husband, Deepak Kochhar, were arrested by the CBI in December of the previous year in connection with this case. However, they were granted interim bail by the Bombay High Court, which criticized the CBI for their "casual and mechanical" arrest without proper application of mind. Venugopal Dhoot, the founder of Videocon Group, was also arrested but later granted interim bail.

The CBI alleges that Kochhar misused her official position by approving loans to Videocon just a day after her husband's firm received INR 64 crore from the company. In 2022, during Kochhar's arrest, the CBI stated that it was investigating a wrongful loss of INR 1,730 crore to ICICI Bank through six loan transactions, two of which were approved by a sanctioning committee in which Chanda Kochhar was involved. Kochhar's lawyer argued that the bank had written to the agency stating that no wrongful loss had occurred.

In addition to the Kochhars and Dhoot, the CBI has named several companies, including Nupower Renewables (NRL) managed by Deepak Kochhar, Supreme Energy, Videocon International Electronics Ltd, and Videocon Industries Limited, as accused parties in the First Information Report (FIR). The CBI alleges that ICICI Bank granted credit facilities amounting to INR 3,250 crore to Videocon Group companies, in violation of the Banking Regulation Act, RBI guidelines, and the bank's credit policy.