Court says CBI misused power by arresting former ICICI Bank CEO Chanda Kochhar

The Bombay High Court criticized the CBI’s arrest of Chanda Kochhar and her husband, Deepak Kochhar, in connection with a loan fraud case involving Videocon and ICICI Bank. The court stated that the arrest was unjustified and amounted to an “abuse of power.” It highlighted that the arrest was made hastily, without proper consideration of the law.

Lack of Legal Justification:

The High Court pointed out that the CBI failed to provide sufficient evidence or circumstances to support the arrest of the couple. According to the court, the absence of such evidence rendered the arrest illegal.

Right to Silence and Cooperation:

The court rejected the CBI’s claim that the Kochhars were uncooperative during the investigation. It cited Article 20(3) of the Indian Constitution, which grants individuals the right against self-incrimination. The court clarified that exercising this right should not be considered non-cooperation.

Interim Bail Granted:

The Bombay High Court had previously granted Chanda Kochhar interim bail, acknowledging a prima facie case of illegal arrest. This decision was made about two weeks prior to the recent ruling.

Details of the Case:

The CBI had accused Chanda Kochhar, Deepak Kochhar, and Videocon chief Venugopal Dhoot, along with certain companies, in a FIR. The charges included criminal conspiracy and violations of the Prevention of Corruption Act (PCA). Dhoot was also arrested but was granted bail in January 2023.

ICICI Bank – Videocon Scam

The ICICI-Videocon loan scam revolves around a criminal plot masterminded by Chanda Kochhar, the Managing Director of ICICI Bank. Exploiting her influential position, Kochhar approved a massive loan of ₹3,250 crore (US$696.34 million) to Videocon International Electronics Limited (VIEL), owned by Venugopal Dhoot, between June 2009 and October 2011. This fraudulent act aimed to deceive the bank in exchange for illicit favors and personal gains in NuPower Renewables Private Limited (NRPL), a company owned by Kochhar’s husband, Deepak Kochhar.

During the preliminary investigation conducted by the Central Bureau of Investigation (CBI), it was revealed that ICICI Bank violated its own policies by granting six loans totaling ₹1,875 crore to companies associated with the Videocon Group, spanning from June 2009 to October 2011. The CBI alleges that these loans were declared as non-performing assets in 2012, resulting in a staggering loss of ₹1,730 crore for the bank.

In April 2023, the CBI filed a comprehensive chargesheet against Chanda Kochhar, Deepak Kochhar, Venugopal Dhoot, and six other individuals involved in the scam. Subsequently, on June 26, 2023, the CBI presented their arguments before a special court, seeking validation and acceptance of the chargesheet. The investigation into this elaborate conspiracy continues, shedding light on the intricate web of deceit and corruption that has tarnished the reputation of ICICI Bank and its key players.