Videocon-ICICI Bank loan case: Sufficient material to substantiate allegations against Chanda Kochhar, others, says court

Special Judge S P Naik-Nimbalkar has said in the order that from the documentary and oral evidence submitted by the CBI, it is crystal clear that there is sufficient material to substantiate allegations against the accused.

“…it can be safely inferred, prima facie, there are grounds to believe that the accusation is well founded. Role and complicity of each accused is detailed, specified and substantiated with evidence. The allegation pertaining to concealment of facts, committing irregularity while sanctioning of loans, diversion of the loan amount, misutilisation of funds by not using the same for the purpose for which it was sanctioned, receiving part of loan as motive/reward by public servant through companies established by her husband, concealment of interest in the loan proposal and thereby violating the circulars issued by RBI in this regard as well as illegal gratification received by the public servant, are, prima facie, evident on record,” the court said.

The court also considered other evidence including details of the companies involved, loans given by the bank. It said that evidence included circulars by the RBI pertaining to loans including on disclosures to be made on if a director of the bank has any interests in loan proposals. The court said that a letter dated May 28, 2019, produced by the CBI showed that Kochhar had not disclosed her relationship with VIL.

The court also said that the chargesheet had details about the funds transfer in various accounts linked to Videocon Industries Limited and NuPower Renewables Limited, linked to Deepak, and based on it the roles of all the accused in the transactions were demonstrated. It said that at this stage, there was a prima facie case established by the CBI on sections under the Indian Penal Code including criminal conspiracy, cheating against all the accused and criminal breach of trust by a public servant against Chanda Kochhar.

The court also considered the submission made by the CBI’s counsel, A Limosin, that since the alleged offence took place between 2008-2017, the Prevention of Corruption Act would apply from before amendments were made to it in 2018.

The CBI had filed a chargesheet in the case in April alleging that after she was made MD and CEO of ICICI Bank in 2009 to 2011, ICICI Bank had sanctioned six loans to companies linked to Videocon Group. The CBI alleged that these loans had irregularities and that Rs 64 crores were received during this time by a company linked to Deepak. The ICICI Bank, while granting sanction to prosecute Kochhar, had said that no wrongful loss was caused to it but referred to the Rs 64 crore received by Deepak’s firm as a ground for the sanction.