Videocon loan case: Ex-ICICI Bank CEO Chanda Kochhar, husband arrested
The former ICICI Bank CEO, Chanda Kochhar, and her husband Deepak Kochhar were arrested by the CBI on Friday (December 23). The duo was held in connection with a money laundering case involving the bank and Videocon Group. To recall, Chanda resigned as the top boss of the financial institution in 2018 and the bank classified her departure as "termination for cause" in 2019.
Why does this story matter?
Despite the stringent banking regulations in our country, there are always some who manage to bypass the rules. The Kochhars and Videocon tried to do something similar. Right from the moment Chanda Kochhar took charge as ICICI Bank's MD-CEO in 2009, she started sanctioning loans for Videocon left and right. Apart from CBI, the Enforcement Directorate (ED) is also investigating this financial quagmire.
What were the dealings between ICICI and Videocon?
During her tenure at ICICI, Kochhar allegedly favored Videocon Group, a consumer electronics/oil and gas exploration company in securing a loan worth Rs. 3,250 crore in 2012. This turned it into a non-performing asset (NPA) for the bank and benefited Kochhar and her family. This sum was part of a Rs. 40,000 crore loan that Videocon received from a consortium of 20 banks.
What did CBI say in its charges?
As per CBI, months after Videocon's loan was sanctioned by ICICI, ex-Videocon chairperson Venugopal Dhoot invested crores in NuPower Renewables, a firm founded by Deepak Kochhar. The loan was allegedly cleared by a committee of which Chanda was a member. She abused her post and "got illegal gratification/undue benefit through her husband from Dhoot" for sanctioning the loan, the agency claimed.
Kochhar claims that she is innocent
The 59-year-old Kochhar worked at ICICI Bank for over 30 years and was one of the country's most influential women bankers. She continues to deny any wrongdoing. Kochhar claims that "credit decisions at the bank are unilateral" and that conflict of interest is not possible.
