Ex-ICICI Bank CEO Chanda Kochhar & Husband Arrested In Videocon Loan Case; All You Need To Know

The Central Bureau of Investigation (CBI) arrested ICICI Bank's former chief executive officer (CEO) and managing director, Chanda Kochhar, and her husband, Deepak Kochhar, on December 23 as part of the money laundering case involving the bank and the Videocon Group. The duo had allegedly conducted fraudery by providing ₹3,000 crore loan to the Videocon Group without carrying out the due procedure of the bank during her tenure in 2012.

The CBI conveyed that the Kochhars were not cooperative in the investigation and will be produced before a special CBI court in Mumbai on December 24.

Know The Case In Detail

According to the CBI, the Videocon group, headed by Venugopal Dhoot, made around 28 proposals to the ICICI Bank. Out of this, eight proposals were passed by the Chanda Kochhar-led team, who was a part of the recommending committee, which verified and passed the proposals. Based on the committee's decision, the bank issued loans worth ₹1,875 crores to the Videocon Group and the sister companies between 2009 and 2011. However, it was later found that most of these loans were in complete violation of the banking regulations and ICICI Bank policies.

As the irregularities came to light, the CBI registered a case in January 2019, alleging quid pro quo (favour or advantage granted in return for something) in sanctioning loans worth crores to the companies of Videocon Group. The Enforcement Directorate (ED) then initiated a money laundering probe and arrested Mr Kochhar as one of the main accused in the ICICI-Videocon loan case. In September 2020, he was slapped with charges under the Prevention of Money Laundering Act (PMLA), and the probe has been actively conducted to unfurl further details of the case.

Investigations conveyed that after the loan was disbursed, one of Dhoot's companies (Supreme Energy) issued a loan of ₹64 crores to NuPower Renewables (NRL), where Deepak Kochhar held a 50 per cent stake. In the same year, Dhoot transferred assets worth ₹78.15 crores, including a Mumbai flat in the name of Ms Kochhar and other properties linked to her husband's company Nupower Renewables Private Limited, and its subsidiaries. All these assets allegedly came as quid pro quo for Chanda sanctioning the loans, but eventually, the Videocon loan turned into a Non-Performing Asset (NPA) and was marked as a 'bank fraud.'

Investigations Continue On Multiple Such Loan Irregularities

Allegedly, during Ms Kochhar's tenure from 2009-2011, the ICICI Bank sanctioned multiple high-value loans to the Videocon Group entities, and the outstanding balance against the loans was adjusted as another term loan. After the loans turned into bad loans for ICICI Bank in June 2017, concerns were raised.

According to The Hindu's report, the 59-year-old Chanda Kochhar stepped down as the CEO and MD of the bank in October 2018, and charges were put that she "favoured" the company for benefits. The CBI has now booked the Kochhars and Dhoot, along with their companies Videocon Group, Nupower Renewables, Supreme Energy, Videocon International Electronics Ltd, and Videocon Industries Limited, under Indian Penal Code (IPC) sections of criminal conspiracy and provisions of the Prevention of Corruption Act.

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