Chanda Kochhar arrest: What are the allegations against ICICI Bank ex-CEO?

Former ICICI Bank CEO and MD Chanda Kochhar, her husband Deepak Kochhar were arrested by the CBI on Friday in a loan fraud case worth over Rs 3,000 crore. One of India’s top bankers at one stage, Kochhar was called to the CBI headquarters and was arrested after brief questioning. They allegedly gave evasive answers and did not cooperate with the investigators.

CBI is seeking a police remand of the Kochhars to interrogate them in connection with a loan fraud case involving ICICI Bank and Videocon Group. The probe agency has alleged a series of 
cheating and irregularities in loans that were sanctioned by ICICI bank to Videocon Group companies when Kochhar was at the helm. 

What are the allegations against former ICICI Bank CEO Chanda Kochhar?

Chanda Kochhar, her husband and Videocon Group promoter Venugopal Dhoot have been named by the CBI as accused in a corruption and criminal conspiracy case. The FIR in the loan fraud case also names companies Nupower Renewables (NRL), Supreme Energy, Videocon International Electronics Ltd and Videocon Industries Limited, as accused. 

As per the CBI, credit facilities of around Rs 3,250 crore sanctioned to Videocon group companies, were in violation of RBI rules and the ICICI Bank’s credit policy. 

The CBI has claimed that Dhoot invested Rs 64 crore in Deepak Kochhar’s Nupower Renewables in a quid pro quo. Dhoot allegedly made this investment through a company Supreme Energy Pvt Ltd (SEPL), which he transferred to Deepak Kochhar-managed Pinnacle Energy Trust. The transfers happened from 2010 to 2012 through a circuitous route.

Six loans of Rs 1,875 were disbursed by ICICI Bank to Videocon Group and its associated firms between 2009 and 2011 during Kochhar’s tenure, CBI alleged. The FIR says that Chanda Kochhar was on the committees sanctioning the loans in two cases worth Rs 300 crore and Rs 750 crore. 

Dhoot transferred Rs 64 crore to Nupower a day after the Rs 300 crore loan in September 2009. Chanda Kochhar had taken charge as ICICI Bank MD and CEO in May 2009. It is further alleged that most of these loans turned into non-performing assets, setting the bank back by Rs 1,730 crore. 

"This was the first major capital received by NRL (Nupower Renewables) to acquire the first power plant. Chanda Kochhar got illegal gratification, undue benefit through her husband from VIL/VN Dhoot for sanctioning Rs 300 crore loan to VIEL," the FIR says.

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(With inputs from PTI)