Business

Chanda Kochhar, ex-CEO of ICICI Bank, arrested: What’s the Videocon loan case situation?

CBI stated that Chanda sanctioned loans to private firms in a criminal conspiracy to defraud ICICI Bank in an FIR filed in 2019. Deepak Kochhar was arrested by the Enforcement Directorate in September 2020.

ICICI-Videocon loan case: On Friday, Chanda Kochhar (ex-CEO and Managing Director of ICICI Bank) and Deepak Kochhar (husband) were detained by the Central Bureau of Investigation for alleged cheating in a loan of more than Rs 3,000 crore that was provided to Videocon Group by the bank in 2012.

CBI stated that the Kochhars had been evasive and refused to cooperate with the investigation. On Saturday, they will be brought before a CBI special court.

According to the case details Nupower Renewable was owned Deepak Kochhar, Chanda Kochhar. Venugopal Dhoot, a Videocon promoter, allegedly invested in Nupower crores of rupees months after Videocon Group received a loan from ICICI Bank for Rs 3,250 crore in 2012. This was approved by Chanda.

The loan to Videocon became a Non-Performing Asset (NPA) or bad loan and was later branded as a ‘bank scam’. Chanda Kochhar (now 59) resigned as CEO and MD of Bank. She was accused of “favouring Videocon Group”, an oil and gas exploration and consumer electronics company.

CBI stated that Chanda sanctioned loans to private firms in a criminal conspiracy to defraud ICICI Bank in an FIR filed in 2019. Deepak Kochhar, one of the main suspects in the ICICI Videocon loan case was arrested by the Enforcement Directorate (PMLA) on September 2020.

They stated that Chanda Kochhar, her spouse, and Venugopal Daot of Videocon Group along with Nupower Renewables and Supreme Energy were now being held by the CBI.

The case in detail

According to the details, a huge loan of Rs 3.250 crore was made by ICICI Bank for the Videocon Group. It was given by the industrialist Venugopal Daot when Chanda was heading the bank. CBI inputs show that Videocon Group, led by Dhoot had submitted around 28 proposals for the ICICI Bank. Chanda Kochhar’s team only approved 8 of these proposals. She was also part the recommending committee that approved and rejected four proposals by the Videocon group.

In 2009, between 2009 and 2011, the Bank granted loans totalling Rs 1,875 crore for the Videocon Group as well as its sister companies. CBI found that most of these loans were in violation of banking regulations and ICICI Bank policies.

Dhoot’s firm Supreme Energy made the loan available. It then issued a loan amounting to Rs 64 crore for NuPower Renewables. Deepak Kochhar owned a 50% stake in NuPower Renewables.

CBI stated that Deepak Kochhar’s Rs 64 crore loan was part of a deal.

ED investigated the case and discovered that loans given to Videocon were being kept alive through evergreening or refinancing loans in the amount of Rs 1,730 crore. These loans became bad loans for ICICI Bank on June 2017.

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button