Chanda Kochar, former CEO of ICICI Bank, and her husband Deepak Kochar have been arrested by CBI in connection with the ICICI-Videocon loan fraud case. The arrest relates to allegations that Chanda Kochhar fraudulently disbursed a loan to the Videocon Group of Companies while she was placed at the helms of affairs at ICICI Bank.
Her husband Deepak Kochhar’s company, NuPower Renewable, received funding from Videocon Group as quid pro.
The loan to Videocon was eventually classified as “bank fraud” after it became a non-performing asset (NPA).
In 2012, Chanda Kochhar was the head of ICICI Bank and is accused of lending Rs 3,250 crore to the Videocon Group. Six months later, Kochhar’s 50%-owned NuPower Renewables received a Rs 64 crore loan from Venugopal Dhoot’s Supreme Energy.
Fall from grace of Poster Women of India Inc who was ranked amongst country’s most powerful women
Chanda Kochar was the first women to head an Indian Bank, having fought one of the toughest succession battles in corporate India, but her downfall has been shockingly rapid.
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Timeline of Chanda Kochar’s Fall from Grace
March 2016
Arvind Gupta, a shareholder activist and the founder and trustee of the Indian Investors Protection Council, alerts Prime Minister Narendra Modi to “the illicit banking and commercial relationship between Videocon Group of Venugopal Dhoot and ICICI Bank’s MD & CEO Chanda Kochhar’s family” in a letter dated March 15, 2016.
Gupta eventually posted a copy of the letter on his blog in October 2016 after waiting for feedback from the authorities.
July 2016
Following a referral from the Prime Minister’s Office, the RBI launches a thorough investigation into the claims that Kochhar’s spouse, Deepak, received unanticipated benefits from his connections to Dhoot, whose business owed ICICI Bank a sizable amount of money. However, it does not uncover any evidence that ICICI Bank offered the Videocon Group any reciprocal benefits.
March 2018
The mainstream media picks up Gupta’s blog post while the nation is still hurting from the Rs 13,000 crore PNB-Nirav Modi fraud, and this time the story creates significant waves. But before the month is out, the board of ICICI Bank examines the bank’s internal procedures for approving loans and finds them to be reliable. Additionally, it affirms its complete faith and confidence in Kochhar and states that none of the alleged nepotism, favouritism, or conflicts of interest exist.
However, the Central Bureau of Investigation begins an initial investigation into Deepak Kochhar on March 31 to look into the claims.
April 2018
Ram Nath Kovind was scheduled to honour Kochhar at the annual meeting of the FICCI Ladies Organization, but she decides not to go after facing charges of unethical behaviour. Kochhar had been the leader of the nation’s third-largest lender since May 2009.
When the CBI detains Kochhar’s brother-in-law Rajiv Kochhar for questioning in the same month, doubts are stoked even more. In this case, it is alleged that his company, Avista Advisory, was given the task of restructuring seven companies’ loans from ICICI Bank totaling more than $1.7 billion in foreign currency.
May 2018
Kochhar receives a notification from the Securities and Exchange Board of India (Sebi) requesting her answer over the alleged violation of disclosure requirements in dealings with the Videocon Group and Nupower Renewables, a business co-founded by her husband.
The board of ICICI Bank launches an independent investigation in response to the escalating controversy, which has been stoked by more anonymous whistleblower accusations against Kochhar. The board is eventually persuaded to consider a second, more thorough investigation due to the scepticism among corporate governance experts and investors alike following the interim report granting the bank a clean bill of health.
June 2018
Former Supreme Court justice BN Srikrishna is appointed by ICICI Bank to lead the independent investigation into Kochhar’s alleged corporate malfeasance. Although she eventually goes on an indefinite absence until the investigation is finished, the bank initially refers to it as her anticipated yearly leave. Soon after, Sandeep Bakhshi assumes temporary control of the bank.
October 2018
In a sudden development Kochhar resigns from her position, even before the Srikrishna panel submits its report.
January 2019
The Videocon Group was granted loans by Kochhar, her husband, and Dhoot, which resulted in a loss of Rs 1,730 crore for the bank due to alleged fraud and corruption. The agency claimed that between June 2009 and October 2011, beginning soon after Kochhar assumed the role of CEO, ICICI Bank approved six high-value loans to various Videocon firms. She apparently was a member of the sanctioning committee that approved a loan for Videocon International Electronics Ltd (VIEL) and Videocon Industries Ltd. totaling Rs. 300 crore and Rs. 750 crore, respectively (VIL).
According to reports, the first sum was deposited into the VIEL account on September 7. The CBI claims that Dhoot moved Rs 64 crore from VIL to NuPower Renewables Limited, the business owned by her husband Deepak Kochhar, the “very next day.”
Days later, the Srikrishna panel delivers its report, which accuses Kochhar of breaking several laws. The lender then makes the decision to withhold all unpaid retirement benefits and to reclaim incentives granted to the borrower totaling Rs. 9.82 crore since 2009. In a statement, Kochhar refers to the bank’s choice to interpret her resignation as a “termination for reason” in light of the investigation report. “I am totally disappointed, wounded, and startled by the decision,” she writes.
February 2019
The Enforcement Directorate (ED) registers a criminal case of money laundering against Kochhar and the others.
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