Chanda Kochhar guilty in Videocon Loan Bribery Case; ED seizes 78 Crore Assets

New Delhi (India) July 22: Chanda Kochhar is the former MD and CEO of ICICI Bank. She is convicted of accepting a bribe of Rs 64 crore. This is done in exchange for authorising a loan of Rs 300 crore to the Videocon Group.

This decision was made in a July 3 order by an appellate tribunal. According to the tribunal, Kochhar's husband Deepak Kochhar used a business associated with Videocon to move the funds.

ED's documents accepted

The panel supported the Enforcement Directorate's (ED) argument. They say that the payment was an obvious quid pro quo. 

The tribunal clarifies that NuPower Renewables Pvt Ltd (NRPL) is a business under Deepak Kochhar's control. He received Rs 64 crore from Videocon's group company SEPL. This transaction happens only a day after Videocon received the Rs 300 crore loan from ICICI Bank.

Loan and bribe link proven

The tribunal says that Videocon chairman Venugopal Dhoot was first represented to be the owner of NRPL. But Deepak Kochhar is also the company's managing director. He is actually the one with the real power. They claim that Chanda Kochhar failed to disclose these relationships when approving the loan. This openly shows a conflict of interest.

The tribunal also criticises an adjudicating authority's November 2020 ruling. It permitted Chanda Kochhar and her family's attached assets to be released.

It said that the former authority didn't notice significant facts. They reached conclusions not supported by the record.

It claimed that the ED had produced strong documentary proof and legally admissible statements. They were recorded in accordance with Section 50 of the Prevention of Money Laundering Act (PMLA). 

Conflict of Interest Not Disclosed

According to the tribunal, this made it clear that Chanda Kochhar fails to declare her conflict of interest. The loan approval is also against ICICI Bank's internal policies.

The case is based on claims that ICICI Bank approved six high-value rupee term loans. The loans cost ₹1,875 crore to Videocon Group companies between June 2009 and October 2011. All loans were approved after Kochhar was appointed managing director and CEO.

Deepak Kochhar and Chanda Kochhar are both currently free on bail. On October 4, 2018, Chanda Kochhar resigned as MD-CEO of ICICI Bank after the revelation of irregularities.

Aadrika Tayal