The Special Court of Prevention of Money Laundering Act (PMLA) on September 8 gave the Enforcement Directorate (ED) custody till September 19 of Deepak Kochhar, husband of former ICICI Bank head Chanda Kochhar.
Deepak Kochhar had been arrested by the ED late on Monday evening in Mumbai. While the ED sought 14 days of custody, the court has approved 11 days.
The ED has arrested Deepak Kochhar in a quid-pro-quo transaction with Venugopal Dhoot's Videocon Group.
Mentioning grounds for arrest, the ED said, "There was material in possession and reason to believe that Deepak Kochar is guilty of the offence of money laundering as defined under section 3 of PMLA punishable U/S 4 of the PMLA.”
Deepak Kochhar had been "evasive and non-cooperative" during the course of the investigation, the ED said.
The Enforcement Directorate had initiated investigation under the provisions of PMLA on the basis an of an FIR registered by the Central Bureau of Investigation in January last year under sections 120 B, 420 of Indian Penal Code for illegal sanctioning of loans amounting to Rs 1,875 crore to the Videocon Group of Companies.
The ED's investigations revealed that loans were refinanced and new loan aggregating to Rs 1,730 crore was sanctioned to Videocon Industries Limited (VIL) and its group companies and these loans became non-performing assets (NPAs) for ICICI Bank on June 30, 2017.
The investigation further revealed that an amount of Rs 64 crore, out of the loan of Rs 300 crore sanctioned by a committee headed by ICICI Bank MD Chanda Kochhar to Videocon International Electronics Ltd, was transferred to Nupower Renewables Pvt. Ltd. (NRPL, earlier known as NuPower Renewables Ltd, a company of Chanda Kochhar's husband Deepak) by VIL just a day after the disbursement of loan by ICICI Bank.
Further, net revenue of Rs 10.65 crore was generated by NRL from these tainted funds. Therefore, proceeds of crime amounting to Rs 74.65 crore were transferred to/generated in NRPL.
The investigation also revealed that Chanda Kochhar and her family had acquired an apartment at Mumbai owned by one of the Videocon group companies, by way of acquiring that company through her family trust at a nominal price by creating book entries.
Following a furore over the CBI and ED cases, Chanda Kochhar, one of Corporate India's most recognised faces, resigned as MD and CEO of ICICI Bank in October 2018.