This case, which has garnered widespread attention due to the high-profile individuals involved, has once again brought corporate governance and banking practices under scrutiny. Chanda Kochhar, once a celebrated figure in the banking industry, has consistently denied any wrongdoing, asserting that all loan approvals during her tenure were above board and followed due processes. Despite her claims, the CBI continues to press charges of corruption and criminal conspiracy, arguing that the loans were part of a quid pro quo arrangement, benefiting the Kochhars financially.
The CBI’s case hinges on a specific loan of Rs 3,250 crore granted by ICICI Bank to the Videocon Group in 2012, when Chanda Kochhar was at the helm of the bank. According to the investigation agency, the loan was part of a larger financial package of Rs 40,000 crore extended by a consortium of banks to Videocon, a conglomerate with interests ranging from consumer electronics to oil exploration. The CBI claims that as part of this transaction, a company controlled by Deepak Kochhar received a significant investment from Videocon, which later helped the Kochhar family acquire properties.
Investigators believe that this financial arrangement was facilitated by Chanda Kochhar in her capacity as the CEO of ICICI Bank, creating a conflict of interest and violating ethical banking practices. The involvement of the Kochhars has also drawn attention to the broader issue of corporate governance within India’s banking sector. The Kochhar case is one of several high-profile scandals that have shaken confidence in the oversight mechanisms of India’s financial institutions.
Following the CBI’s investigation, the Enforcement Directorate (ED) also opened a separate probe into the case, focusing on potential violations of the Prevention of Money Laundering Act (PMLA). The ED has accused Chanda and Deepak Kochhar of laundering funds obtained through the Videocon deal and using them to acquire assets, both in India and abroad. These investigations have resulted in the seizure of properties linked to the Kochhars, further intensifying the legal battle.
Chanda Kochhar, who stepped down as CEO of ICICI Bank in 2018, has maintained her innocence throughout the investigation. In statements to the media, she has reiterated that all loan approvals during her tenure were subject to thorough review by the bank’s board and that no irregularities were found at the time. She has accused the investigative agencies of targeting her unfairly and has expressed confidence that the judiciary will vindicate her.
Deepak Kochhar, meanwhile, has been accused of using his business ventures as a conduit for the illicit funds linked to the Videocon loan. According to the CBI, his company, NuPower Renewables, received a Rs 64 crore investment from Videocon shortly after the ICICI Bank loan was approved. The agency alleges that this transaction was part of a broader scheme to siphon off funds from Videocon’s business operations for the benefit of the Kochhar family. Deepak Kochhar, like his wife, has denied these charges, stating that his business dealings were legitimate and unconnected to ICICI Bank’s loan approvals.
The case took a significant turn when the Bombay High Court, in January this year, granted interim bail to the Kochhars after concluding that their arrest by the CBI did not follow proper legal procedures. The court noted that the Kochhars had been cooperating with the investigation and that there was no immediate need for their continued detention. The CBI, dissatisfied with this ruling, filed an appeal with the Supreme Court, arguing that the Kochhars’ release on bail could hinder the investigation and that there was a risk they could tamper with evidence.
The Supreme Court, while issuing the notice to the Kochhars, has not yet made a decision on the CBI’s appeal. The court has asked the Kochhars to respond to the notice, setting the stage for a legal showdown between one of India’s most prominent corporate families and the country’s primary investigative agency.