Chanda Kochhar Found Guilty in ICICI-Videocon Loan Scam: SAFEMA Tribunal Upholds Rs 64 Crore Bribery

In the ICICI Bank-Videocon loan case, the Appellate Tribunal under the SAFEMA (Smugglers and Foreign Exchange Manipulators Act) has found former ICICI Bank CEO Chanda Kochhar guilty of receiving a Rs 64 crore bribe in exchange for approving a Rs 300 crore loan to Videocon Group in 2009.

Chanda Kochhar Found Guilty in ICICI Bank-Videocon Case

This ruling reverses an earlier clean chit given by the PMLA Adjudicating Authority and supports the Enforcement Directorate (ED), which had earlier attached assets belonging to the Kochhars. The Tribunal said the transaction appears to be a clear case of money laundering.

Clear Conflict of Interest and Asset Diversion

According to the Tribunal, Kochhar's approval of the Rs 300 crore loan represented a serious conflict of interest, especially since she was familiar with Videocon Group and its promoter, Venugopal Dhoot. Shortly after the disbursal of the loan, Rs 64 crore was routed to NuPower Renewables Pvt. Ltd. (NRPL), a company managed by her husband Deepak Kochhar.

The money reached NRPL via Supreme Energy Pvt. Ltd. (SEPL), a company formerly controlled by Venugopal Dhoot. Dhoot is reported to have resigned from SEPL in January 2009 and transferred control to Deepak Kochhar, who then used the funds to expand NRPL, a move the Tribunal described as suspicious and indicative of quid pro quo.

The Tribunal criticised the earlier ruling by the Adjudicating Authority, saying it ignored important facts and instead focused too much on technical details like company shareholding. It said the Authority failed to see that Deepak Kochhar was running NRPL and had directly benefited from the Rs 64 crore.

The Tribunal also rejected Chanda Kochhar's explanation for attending the loan committee meeting. It said she should not have been involved in the decision, as she knew the parties involved, which went against ICICI Bank's internal policies.

Timeline of Legal Developments

• January 2020: ED attached assets worth Rs 78 crore belonging to the Kochhars.
• November 2020: PMLA Adjudicating Authority reversed the attachment.
• September 2020: Deepak Kochhar was arrested by the ED.
• December 2022: Chanda and Deepak Kochhar were arrested by the CBI.
• January 2023: Bombay High Court granted them interim bail.
• February 2024: The High Court ruled their arrest as unlawful and an abuse of power.