Mumbai: Ex- ICICI Bank CEO Chanda Kochhar and Husband Arrested by CBI
Update 27/12/22: ICICI Bank Fraud: CBI Arrests Videocon Chairman from Mumbai
In connection with the ICICI bank fraud case, the Central Bureau of Investigation (CBI) detained Videocon chairman Venugopal Dhoot once more in Mumbai on Monday. A special court in Mumbai remanded Dhoot for three days of CBI custody, according to sources.
Days earlier, the agency had arrested Chanda Kochhar, the former MD & CEO of ICICI Bank, and her husband Deepak Kochhar. The CBI claimed that the bank, with Kochhar in charge, gave the Videocon Group a loan for 1,875 crores in violation of its lending guidelines.
This was allegedly in exchange for the bribe of 64 crore rupees that Dhoot allegedly paid, but it was represented as a group owner investment in the company run by Kochhar’s husband Deepak.
The CBI also charged Deepak Kochhar with obtaining ownership of NuPower Renewables (NRL) Ltd with the help of a co-accused.
The ICICI Bank Fraud Case
The ICICI Bank fraud first came to notice in 2019. the agency filed a case against the Kochhars and Venugopal, as well as companies such as NuPower Supreme Energy, Videocon International Electronics, and Videocon Industries.
The agency stated in the preliminary enquiry (PE), it was looking into irregularities in the distribution of a loan of 40,000 crores by a group of lenders to the Videocon Group.
In violation of ICICI Bank’s lending guidelines, six loans totaling 1,875 crore were approved for the Videocon Group and its affiliated businesses between June 2009 and October 2011, according to the CBI.
The loans were later designated as non-performing assets in 2012, resulting in a loss to the ICICI Bank of $1,730 crore, according to the CBI.
Evidences Against Dhoot In ICICI Bank Fraud
Based on the concrete evidence the CBI gathered against Videocon Ex MD, Dhoot during its investigation over the previous two years, he was arrested in the ICICI Bank fraud case.
Statements from Dhoot’s firm’s bank accounts and books show that the Rs 64 crore loan to Deepak Kochhar’s company was nothing more than kickbacks in exchange for receiving loans from the ICICI Bank, which was then led by Chanda Kochhar.
According to the sources, there is proof that Chanda Kochhar, Deepak Kochhar, and Venugopal Dhoot conspired together.
The CBI on December 24 brought Chanda Kochhar, the former CEO and MD of ICICI Bank and her husband Deepak Kochhar before the Mumbai special court.
They were detained due to alleged irregularities in a loan of more than Rs 3,000 crore given to Venugopal Dhoot’s Videocon Group by the ICICI Bank. The couple was arrested on Friday.
The loan fraud case made headlines in 2019 and surprised the public. In 2011, Chanda Kochhar was awarded the Padma Bhushan, India’s highest civilian honour.
Chanda Kochhar’s Business Accomplishments
Chanda Kochhar has been named one of Fortune’s “Most Powerful Women in Business” every year since 2005. She was also ranked 20th on Forbes’ “World’s 100 Most Powerful Women” list in 2009.
Kochhar was also named to Bloomberg Markets’ “50 Most Influential People in Global Finance” List. Kochhar is also a member of the India-Russia Business Leaders Forum and the US-India CEO Forum. She was also the president of the International Monetary Conference.
Chanda Kochhar and her Husband are Being Investigated
Deepak Kochhar’s NuPower Renewables received Rs 64 crore in funding from one of Venugopal Dhoot’s companies via unsecured fully convertible debentures, putting the couple under scrutiny (FCDs).
It happened weeks after the Videocon group received a Rs 3,250 crore loan from ICICI Bank. Six loans worth Rs 1,875 crore were allegedly sanctioned for the Videocon Group and its associated companies.
In 2019, the Enforcement Directorate filed a criminal case for money laundering against the Kochhar couple, Dhoot, and others.
Chanda Kocchar’s Tenure at ICICI Bank
Kochhar, a management graduate, was instrumental in establishing ICICI Bank, which is now one of India’s largest private sector banks, in the 1990s.
Kochhar was appointed to the committee in charge of establishing the bank in 1993.
In 1994, she was promoted to the assistant general manager (AGM), and in 1996, to deputy general manager (DGM).
Kochhar led ICICI Bank’s newly formed Infrastructure Industry Group in 1996, with the goal of developing dedicated industry expertise in the areas of power, telecom, and transportation.
Under Kochhar’s leadership, ICICI Bank established the nascent retail business in 2000, focusing primarily on technology, innovation, process engineering, and distribution and scale expansion. She was appointed executive director in April 2001.
Kochhar was later appointed as ICICI Bank’s deputy managing director. Kochhar was in charge of the bank’s international and corporate operations in 2006-07. She was the bank’s chief financial officer (CFO) and joint managing director from 2007 to 2009.
ICICI Bank Fired Kochhar
She resigned from her position in 2018 due to a conflict of interest and was later fired by ICICI Bank, a decision that was later upheld by the Supreme Court of India. Kochhar was arrested by the CBI after being accused of money laundering.
The Loans were Approved by Chanda Kochhar Lead Committee at ICICI Bank.
The CBI claimed that the loan was approved by a committee on which Kochhar served. The investigation agency said that she abused her official position and got illegal gratification/undue benefit through her husband from Dhoot for sanctioning loans to Videocon.
Chanda Kochhar issued a statement disputing the claims. “I reiterate that none of the credit decisions at the bank is unilateral. The organisation design and structure obviate the possibility of conflict of interest.”
After Maths Of The Scam at ICICI Bank
Chanda Kochhar joined ICICI Bank in 1984 and rose through the ranks to become its Managing Director (MD) and CEO in 2009. In 2018, she resigned from her position.
Following the resignation announcement, the stock of the country’s largest private lender increased nearly 6% to Rs 320 on October 4, 2018.
On January 28, 2019, ICICI Bank share price fell 4% to a seven-week low of Rs 341.65 after the CBI filed a case against Chanda Kochhar, Deepak Kochhar, and Venugopal Dhoot. On December 23, 2022, ICICI Bank’s shares closed 1.26% lower at Rs 879.20.
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