ED, I-T Dept turn their gaze on ICICI Bank-Videocon Group loan case

The Enforcement Directorate and Income Tax Department have turned their focus on ICICI Bank-Videocon loan case and are in the process of collection relevant files and papers from the Reserve Bank of India and Securities and Exchange Board of India.

Once the Central Bureau of Investigation (CBI) files FIR in the case pertaining to the sanction of loan worth Rs 3,200 crore to Venugopal Dhoot-led Videocon Group, the ED is expected to follow up the matter, a source told Moneycontrol. “As of now, ED is preparing its stand in this case,” the source said.

This is not the first time the Venugopal Dhoot firm is facing the heat from the ED. In 2014, Videocon Group received a show cause notice for violation of forex norms. The case was closed after penalizing the companies.

In 2007-08, the Videocon Group had formed a company in Cayman Islands called Tuskar Overseas. The company raised loans from ICICI Bank Ltd in the UK and Canada based on guarantees given six domestic Videocon entities. In its preliminary investigation, the ED had found that Tuskar Overseas didn’t have a legitimate business.

Meanwhile, the I-T Department has also started looking into the books of the entities. A source close to development told Moneycontrol, “It will take some time to ascertain whether any income tax laws have been violated or not.”

The CBI has questioned few ICICI Bank officials as part of its preliminary inquiry to find if any quid pro quo was involved in the bank issuing the loan to the Venugopal Dhoot company.