Chanda Kochhar misused official position to sanction loan to Videocon: Mumbai Court summons Kochhar, husband in money laundering case

A Mumbai court has observed that former Managing Director and CEO of ICICI Bank, Chanda Kochhar misused her official position to grant loan to Videocon group companies for which she got illegal gratification through her husband accused Deepak Kochhar. .The Special Court dealing with cases pertaining to Prevention of Money Laundering Act (PMLA), therefore, directed the former Managing Director and CEO of ICICI Bank, Chanda Kochhar and her husband Deepak Kochhar to appear before the Court on February 12, 2021 along with 9 other accused in connection with the money laundering case involving ICICI Bank and Videocon Group companies.."After going through the submissions, written complaints and statements recorded under PMLA, it appears that, accused Ms. Chanda Kochhar had misused her official position in granting loan to accused Mr. V.N. Dhoot and/or Videocon group companies and got illegal gratification/undue advantage through her husband accused Mr. Deepak Kochhar, per-se quid-pro-quo web-transactions, created by the accused persons through various companies for siphoning off money and proceeds of crime," the Court said..Additional Sessions Judge Abhijeet Nandgaonkar granted leave to the Enforcement Directorate (ED) to continue with their ongoing investigation and take any further action in accordance with law..Chanda Kochhar had joined ICICI bank in the year 1984 and had risen to become the Managing Director and CEO of the bank..The alleged money laundering being investigated by the ED relates to siphoning off six high value loans from ICICI Bank to various companies of Videocon Industries Ltd. to the tune of Rs. 300 crores in contravention of rules and policies of the sanctioning committee..ED had registered an Enforcement Case Information Report (ECIR) against the 11 accused for money laundering offences under Sections 3 along with Section 70 of the PMLA..It is ED's case that Deepak Kochhar was a close acquaintance of VN Dhoot, the Chairman and Managing Director of M/s Videocon Industries Ltd.But Chanda Kochhar had neither disclosed this fact nor recused herself from sanctioning committee of ICICI bank while sanctioning loan to Videocon. .About Rs. 64 crores out of the total amount was thereafter transferred to Deepak Kochhar’s company NuPower Renewables Pvt. Ltd. (NRPL) as illegal gratification for sanctioning of loan.The money was transferred to NRPL through a web of companies, the ED claimed. .ED alleged that the Kochhars were long associated with Dhoot who had invested about 10 crores in a Kochhar company Credential Investment & Finance Ltd. in the year 1993.“She (Chanda Kochhar) was shareholder in CFL and funds were transferred from her salary account to CFL,” Court’s order stated..ED further alleged that the residential flat of the Kochhars was also purchased with the crime proceeds received from Dhoot..After going through the submissions, complaints and statements recorded under PMLA, the Court opined that the material is sufficient to proceed against the accused persons and directed them to appear before the Court on February 12..[Read Order]