Chanda Kochhar controversy: The controversies surrounding the former leaders of ICICI Bank, Chanda Kochhar and Videocon, have further darkened, a law firm removing all its arsenal. ICICI Bank said on Tuesday that the law firm Cyril Amarchand Mangaldas had withdrawn his report, which exonerated Chanda Kochhar from accusations of nepotism and conflict of interest in the granting of loans to an NPA account – Videocon.
ICICI Bank, under the leadership of Kochhar, was part of the consortium that lent to the Videocon group. The allegation is that Kochhar's husband, Deepak Kocchar, and other relatives would be involved in a company created by Videocon's promoter, Venugopal Dhoot. Now, an investigation report of former Supreme Court Justice B Srikrishna on the allegations – whether or not Chanda Kochhar violated the bank's code of conduct – is expected.
All you need to know about the Chanda Kochhar-Videocon controversy
- In December 2008, Doot created a clean energy company, NuPower Renewables Pvt Ltd (NRPL), jointly owned by Deepak Kocchar and his family.
- A whistleblower claimed that Chanda Kochhar faced a conflict of interest when the ICICI bank lent 3,250 million rupees to Videocon as part of the 20-bank consortium led by SBI in 2012. It was alleged that the loan had been granted to Videocon even though Deepak Kocchar had business ties with Doot.
- After six months of sanctioning the loan, Deepak Kocchar took majority control of NRPL.
- In December 2017, Videocon was identified as one of the largest NPA accounts of the second list of the Reserve Bank of India (RBI). The company is currently the subject of insolvency proceedings under the Code of Insolvency and Bankruptcy (IBC).
- In April, the Central Investigation Bureau (CBI) opened a preliminary inquiry into these allegations. The investigating agency is investigating whether Chanda Kochhar has formally insisted that loans be granted to Videocon, as her husband and relatives would have benefited from the benefits he would have obtained because of his ties to Doot.
- ICICI Bank initially denied these accusations and stated that it was simply one of 20 consortia of banks that had decided to lend 40,000 crores of rupees to the company. Chanda Kochhar was only one of the 12 members of the investment committee having approved the loan.
- However, later, the bank's board appointed former Judge B Srikrishna of the SC to examine the allegations against Chanda Kochhar.
- In June, ICICI Bank asked Chanda Kochhar to leave pending an investigation. Sandeep Bakhshi, Group Insurance Manager, was responsible for leading the bank as COO.
- On October 4, Chanda Kochhar stepped down as CEO and Managing Director of the bank.
- The law firm Cyril Amarchand Mangaldas withdrew his white note to Chanda Kochhar.