Appellate Tribunal Upholds Seizure Of Chanda Kochhar's Assets In Videocon Loan Case

An appellate tribunal has found Chanda Kochhar, former CEO and managing director of ICICI Bank, guilty of accepting Rs 64 crore bribes that were routed through her husband Deepak Kochhar from the Videocon Group, upholding the Enforcement Directorate (ED)'s seizure of her assets.

The bribe was part of a quid pro quo arrangement linked to the sanction of a Rs 300 crore loan to the Videocon group during her tenure, said the tribunal.

In its detailed July 3 order, the tribunal observed that the financial transaction involving Videocon's immediate transfer of Rs 64 crore to NuPower Renewables Pvt Ltd (NRPL), a company managed and controlled by Mr Kochhar, after ICICI Bank disbursed the loan, clearly established a pattern of corrupt practices.

"Although the ownership of NRPL was shown on paper to be with VN Dhoot (Chairman and MD of Videocon Group), he himself admitted that the actual control lay with Deepak Kochhar," the tribunal noted.

The order also stated that the evidence, including statements recorded under Section 50 of the Prevention of Money Laundering Act (PMLA), substantiated the Enforcement Directorate's (ED) claim of a quid pro quo arrangement.

The tribunal came down heavily on the earlier decision of the Adjudicating Authority in November 2020, which had ordered the release of attached assets worth Rs 78 crore, including those linked to the Kochhars. It held that the adjudicating body had "ignored material facts and drawn conclusions contrary to the record."

Backing the ED's actions, the tribunal said, "We find substance in the allegations for quid pro quo involving the sanction of a Rs 300 crore loan by ICICI Bank to Videocon and subsequent transfer of Rs 64 crore to NRPL. The factual matrix supports the ED's claim and justifies the attachment of assets."

The tribunal underscored that Ms Kochhar's role in approving the loan, despite her conflict of interest, was in violation of the bank's internal policies. It highlighted that she was a part of the committee which sanctioned the loan to Videocon, even as her husband's firm benefited financially almost immediately after the disbursal.

The tribunal's ruling marks a major development in the ongoing investigation into corporate fraud and conflict of interest involving one of India's top banking executives.