ICICI-Videocon loan fraud case: CBI receives sanction letter from board to prosecute Chanda Kochhar

ICICI-Videocon loan fraud case: CBI receives sanction letter from board to prosecute Chanda Kochhar

The Central Bureau of Investigation (CBI) has received the sanction letter from ICICI Bank to prosecute former CEO and Managing Director, Chanda Kochhar.

The case involves alleged cheating and irregularities in loans granted by the bank to Videocon Group companies. The sanction letter was obtained under section 19 of the Prevention of Corruption Act.

Notably, the sanction letter reaffirms ICICI Bank's position that no wrongful loss was caused to the bank. This comes after the CBI had previously secured a sanction letter from the bank to conduct an inquiry into Kochhar's involvement in the case. The subsequent letter granting permission for prosecution had been pending until now.

During today's court proceedings, the CBI informed the judiciary that it has finally received the awaited sanction letter from ICICI Bank. As a result, the court is expected to take cognisance of the CBI's chargesheet in the next couple of days.

In December of last year, the central probe agency arrested Chanda Kochhar, the former CEO of ICICI Bank, and her husband Deepak Kochhar in relation to the case.

However, the Bombay High Court granted interim bail to the Kochhar couple and criticised the CBI for their "casual and mechanical" approach to the arrest, stating that it was made without proper consideration.

The CBI accused the ICICI Bank for granting credit facilities amounting to Rs 3,250 crore to Videocon Group companies, which were promoted by Dhoot. The CBI alleged that this action by ICICI Bank violated the Banking Regulation Act, RBI guidelines, and the bank's own credit policy.