Winning Bizness Desk
Mumbai. Chanda Kochhar, former CEO of ICICI Bank, has been found guilty of accepting a bribe worth ₹64 crore in return for approving a ₹300 crore loan to Videocon Group. A tribunal in Delhi ruled that Kochhar misused her position in the bank and violated disclosure norms. This decision came after years of investigation by multiple agencies.
Bribe Linked to Her Husband’s Company
The tribunal noted that a day after the loan was sanctioned, Videocon’s unit transferred the bribe amount to NuPower Renewables Pvt Ltd (NRPL), a firm controlled by Kochhar’s husband, Deepak Kochhar. Though on paper NRPL appeared to be owned by Videocon’s Chairman Venugopal Dhoot, the actual control was with Deepak Kochhar, who was also NRPL’s Managing Director.
How the Fraud Was Committed
Chanda Kochhar allegedly helped approve fraudulent loans to Videocon, which later turned into non-performing assets (NPAs). The couple is said to have financially benefited from these transactions. Investigations into the case were carried out by the CBI, ED, SFIO, and the Income Tax Department. Among the loans under question was a massive ₹3,250 crore loan granted to Videocon in 2012.
Probe Started After Whistleblower Complaint
The case came into light in 2016 after investor Arvind Gupta raised concerns about irregularities in the dealings between ICICI Bank and Videocon Group. He even approached the RBI and the Prime Minister’s Office, but no immediate action was taken. In 2019, the CBI formally registered a case against Chanda Kochhar, Deepak Kochhar, and Venugopal Dhoot.
Bank’s Initial Support and FIR in 2019
On 24 January 2019, after an FIR was filed, several investigative agencies turned their attention to the case. Despite this, ICICI Bank publicly expressed full faith in Chanda Kochhar. The bank only initiated an internal probe after mounting pressure. This led to the CBI registering a case and naming multiple individuals and companies involved.
Asset Seizure and Arrests
The Enforcement Directorate (ED) had earlier seized assets worth ₹78 crore belonging to the Kochhars. Although these assets were later released in 2020 by another authority, the tribunal has now upheld the ED’s action. Deepak Kochhar was arrested in 2020 and later granted bail. Chanda and Deepak were both arrested again in 2022, but the Bombay High Court declared their arrests illegal in 2023. The current verdict may lead to stricter action in the ongoing investigation.
Key Points in a Nutshell
- Chanda Kochhar found guilty of taking ₹64 crore bribe for approving ₹300 crore loan.
- Tribunal said she misused her ICICI Bank position and broke disclosure norms.
- Bribe was routed to her husband’s company NuPower Renewables via Videocon.
- Fraud involved ₹3,250 crore in loans which later turned into NPAs.
- Case began in 2016 after a whistleblower’s complaint to RBI and PMO.
- ED seized ₹78 crore of Kochhars’ assets; tribunal upheld the seizure.
- Both Chanda and Deepak Kochhar were arrested but later released on bail.
