The Central Bureau of Investigation (CBI) has registered a preliminary enquiry (PE) against ICICI Bank CEO Chanda Kochhar's husband Deepak Kochhar in connection with Videocon loan row, sources said on Saturday.
Chanda Kochhar, her husband Deepak Kochhar, and Venugopal Dhoot, the promoter of Videocon Group are caught up in a controversy over ICICI allegedly granting loan worth Rs 32.50 billion to Videocon, of which the unpaid Rs 28.10 billion were declared NPA in 2017.
The role of Deepak Kochhar in the case dates back to December 2008, when he set up a joint venture with Dhoot, NuPower Renewables Pvt Ltd (NRPL) with 50-50 shares owned by both and their associates.
In 2009, Dhoot resigned as NRPL director and transferred around 25,000 shares of his to Deepak Kochhar, and a year later his company Supreme Energy Private Limited allegedly gave loan of Rs 640 mllion to Deepak Kochhar's NRPL.
In what followed a timeline of share transfer between the two, Dhoot's Supreme Energy took over majority of the shares of NRPL which he transferred to his associate Mahesh Chandra Punglia.
Punglia in turn transferred his entire stake in Supreme Energy to Deepak Kochhar's Pinnacle Energy for only Rs 900,000, just six months after the Videocon Group got a loan of Rs 32.50 billion from ICICI Bank.
This has raised a question of conflict of interest, on part of Chanda Kochhar.
Soon after the reports came, the RBI imposed monetary penalty worth Rs 589 billion on ICICI, for failing to abide by rules on the sale of bonds in the held-to-maturity (HTM) category.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.