CBI accuses former ICICI Bank chief Chanda Kochhar of criminal conspiracy

CBI has charged former ICICI Bank head Chanda Kochhar of criminal conspiracy, cheating and abuse of official position by “dishonestly sanctioning loans to the Videocon Group”. 

Kochhar is accused in the FIR filed by CBI of allegedly receiving “illegal gratification through her husband, Deepak Kochhar, and from Videocon MD VN Dhoot for sanctioning a term loan of Rs 300 crore to Videocon International Electronics Ltd”. This apart, her alleged role in influencing disbursal decisions in relevant committees of the bank has also been brought under the scanner. She stepped down from her position last October. 

The CBI has also registered a case against Deepak Kochhar and VN Dhoot. It has also mentioned unknown public servants in the FIR. The agency is probing allegations of ‘quid pro quo’ in the loans granted to Videocon by ICICI Bank. 

The raids have led to seizure of what they described as key documents based on which the CBI is expected to soon summon Chanda and Deepak Kochhar as well as Dhoot for further questioning. Sources added that Dhoot was in his Mumbai office when the searches took place. He was quizzed by the CBI sleuths.

According to the FIR, ICICI Bank disbursed six “high-value loans” between June 2009 and October 2011. On August 26, 2009, a rupee term loan of Rs 300 crore was sanctioned to Videocon International Electronics Ltd (VIEL) in contravention of rules and policy by the sanctioning committee. Kochhar was one of the members of the sanctioning committee, who dishonestly abused her official position and sanctioned this loan in favour of VIEL. On September 7, 2009, this loan was transferred to VIEL. On September 8, 2009, Dhoot transferred Rs 64 crore to NuPower Renewables, managed by Deepak Kochhar. This was the first major capital received by NRL to acquire its first power plant.

The allegations against Chanda Kochhar is that she received “illegal gratification through her husband from Dhoot for sanctioning the Rs 300 crore loan. Deepak Kochhar, Dhoot and Saurabh Dhoot were directors of NRL, which was incorporated in December 2008. Dhoot allegedly allotted 1,997,500 warrants to Deepak Kochhar at the rate of .`10 per warrant, on an initial payment of Re 1 per warrant. In June 2009, shares of NRL held by Dhoot and Kochhar’s Pacific Capital Services Pvt Ltd were transferred to Supreme Energy Pvt Ltd, which became a 95% shareholder of NRL. Dhoot resigned from the directorship of SEPL in January 2009 and subsequently transferred control of the company to Deepak Kochhar by selling/transferring his shares to Pinnacle Energy Trust managed by Kochhar. 

All these entities - VIEL, VIL, NRL and SEPL - have been identified as accused in the FIR. 

Amidst these allegations and probes by multiple agencies, ICICI Bank appointed a committee under former Supreme Court Justice BN Srikrishna to investigate allegations of conflict of interest and quid pro quo against Chanda Kochhar.