Chanda Kochhar moves HC over prosecution sanction by ICICI bank board

The HC bench then posted the matter for further hearing on January 5.

Former ICICI Bank CEO and MD Chanda Kochhar has moved the Bombay High Court challenging the sanction given by the bank’s board to prosecute her in connection with alleged irregularities in loans given to Videocon. In her plea, Kochhar claimed the proper procedure was not followed while granting the sanction.

Kochhar and her husband Deepak were arrested by Central Bureau of Investigation on December 23, 2022 in the case. They were granted bail in January 2023 by HC, which pulled up the agency for arresting in a "casual and mechanical" manner and without application of mind. The Board of the ICICI Bank passed a resolution on April 22 granting sanction to prosecute Kochhar while accepting that there seemed to be a quid pro-quo. The CBI had informed the special court in June about the prosecution sanction given by the bank’s board.

Kochhar’s counsel Amit Desai on Monday submitted to a bench of Justices P D Naik and N R Borkar that the bank had not followed proper procedure while granting sanction. No loss was caused to the bank in the alleged case, he added. The CBI’s advocate, Kuldeep Patil, sought time to file an affidavit in response to the plea. The HC bench then posted the matter for further hearing on January 5. Apart from Chanda and Deepak Kochhars, the CBI had also arrested Videocon group founder Venugopal Dhoot in the case. He too was granted bail later.

As per the CBI, private sector lender ICICI Bank sanctioned credit facilities of Rs 3,250 crore to Videocon Group firms in violation of the Banking Regulation Act, Reserve Bank of India’s guidelines, and the credit policy of the bank. The CBI FIR was lodged in 2019 under Indian Penal Code sections related to criminal conspiracy and the Prevention of Corruption Act. The agency has claimed, as a part of quid pro quo, Dhoot made an investment of Rs 64 crore in Nupower Renewables through Supreme Energy Pvt Ltd (SEPL), and transferred SEPL to Pinnacle Energy Trust managed by Deepak Kochhar through a circuitous route between 2010 and 2012.