Analysis: Why did Chanda Kochhar’s husband Deepak Kochhar and Videocon cause her so much trouble? What is the situation about the 3250-crore loan?
Chanda Kochhar is accused of breaking bank policies by making loans. The CBI has detained Chanda Kochhar, the former CEO and MD of ICICI Bank, and her husband Deepak Kochhar in connection with this case, which occurred in 2009 but only came to light in 2016. They are both charged with irregularities in the 3250-crore loan to the Videocon Group. In 2018, 59-year-old Chanda Kochhar left the ICICI Bank. What exactly is going on here? We’re about to learn.
What exactly is going on?
After taking over as CEO of ICICI Bank on May 1, 2009, Chanda Kochhar disregarded the bank’s policies and authorised a loan for the business of Videocon Group promoter Venugopal Dhoot. After taking over as the bank’s CEO in 2011, Chanda Kochhar received the Padma Bhushan award.
Allegations of regulatory violations when disbursing a 3250-crore loan
A loan of 3,250 crores to Videocon had been sanctioned by Chanda Kochhar. Venugopal Dhoot then handed Deepak Kochhar, Chanda Kochhar’s husband, business advantages. The FIR filed in this instance indicates that a total of six loans totalling Rs. In all of these, rules were established. The CBI has also claimed that a committee was established to award Videocon these loans. That committee includes included Chanda Kochhar. Chanda Kochhar allegedly abused her position as CEO, according to CBI’s allegations in the FIR.
According to the CBI, Chanda Kochhar granted her husband financial advantages in exchange for approving the loan to Videocon.
This entire situation began to come to light in 2016.
In 2016, news about this case first surfaced. Arvind Gupta invested in the Videocon Group and ICICI Bank. He cited the laws that were broken in order to obtain loans. In addition, he said Chanda Kochhar, then the CEO, had authorised a loan to Videocon in 2012 for Rs 3250 crore. Additionally, it is claimed that in exchange for this loan, the business had a contract with NuPower Renewables.
Deepak Kochhar, the husband of Chanda Kochhar, was the company’s owner. Arvind Gupta sent a letter to the RBI, the Prime Minister, and other relevant people requesting an investigation after becoming aware of all this. Additionally, he demanded that the situation be looked into. However, nobody gave it any thought at the moment.
2018 whistle blower complaint
All of this information was made public when a different bank employee accused the management of the scam directly and claimed Chanda Kochhar was also complicit. 2018. This case first came to light. The employee said that between 2008 and 2016, losses on a number of loan accounts were not addressed. Chanda Kochhar was given a notice by Sebi on May 30, 2018, inquiring as to why she had broken all of these guidelines, but she chose not to respond.
Chanda Kochhar opted to leave her position early in October 2018 while the inquiry into this situation was ongoing. This decision was authorised on October 4.
In October 2018, Chanda Kochhar gave notice of her resignation. The CBI filed a cheating case against Chanda Kochhar, Deepak Kochhar, and Venugopal Dhoot on January 22, 2019. Under the Prevention of Corruption Act, a FIR was filed. Additionally, ED charged Chanda Kochhar’s husband Deepak with fraud. Following this, Chanda Kochhar’s and her husband Deepak’s property was also seized by the ED.