(Image source from: PTI)
In the situation involving the ICICI Bank and Videocon loan, the Appellate Tribunal related to the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) has determined that former ICICI Bank CEO Chanda Kochhar is guilty of receiving a bribe of Rs 64 crore for approving a loan of Rs 300 crore to the Videocon Group in 2009. This decision reverses the previous clean result she got from the PMLA Adjudicating Authority and supports the Enforcement Directorate's (ED) temporary freeze on her assets, labeling the transaction as a likely case of money laundering. The Tribunal highlighted a significant conflict of interest regarding Kochhar’s approval of the loan. Soon after she released money to a Videocon company, Rs 64 crore was traced to NuPower Renewables Pvt. Ltd. (NRPL), a firm set up by her spouse Deepak Kochhar.
This money was transferred through Supreme Energy Pvt. Ltd. (SEPL), which is said to have connections to Videocon's founder Venugopal Dhoot. Although the Tribunal recognized that a final decision lies with the Trial Court, it expressed that there was enough initial evidence to support the order to freeze assets under money laundering allegations. When presenting its conclusions, the Appellate Tribunal said it could not accept Chanda Kochhar's explanation for being part of the committee meeting that approved the Rs 300 crore loan to the Videocon Group, an entity with which she had a prior association. The tribunal noted that Kochhar could not claim she was unaware of the connection, and her involvement in the loan approval process clearly broke ICICI Bank's internal regulations and guidelines.
Additionally, the tribunal remarked that right after the Rs 300 crore loan was disbursed, Rs 64 crore was redirected to NuPower Renewables Pvt. Ltd. (NRPL), where her husband, Deepak Kochhar, was in charge. He owned 95% of Supreme Energy Pvt. Ltd. (SEPL), which controlled NRPL. Importantly, VN Dhoot stepped down from SEPL on January 15, 2009, passing control of the firm to Deepak Kochhar.
In its ruling, the tribunal pointed out that the Adjudicating Authority failed to consider important evidence and instead took into account unrelated factors. It highlighted that the Authority had focused too much on how NRPL was owned, ignoring that Deepak Kochhar was the Managing Director and was fully in charge of the company's activities. This was further backed by the remarks of VN Dhoot, which were taken down under Section 50 of the Prevention of Money Laundering Act (PMLA), 2002. He clearly stated that Deepak Kochhar was managing the company. In January 2020, the ED first seized assets worth ₹78 crore belonging to the Kochhars, but the PMLA Adjudicating Authority reversed this decision in November of the same year. The latest decision from the Appellate Tribunal has restored the stance of the ED.
Deepak Kochhar was taken into custody by the ED in September 2020 and was later released on bail. In December 2022, both Chanda and Deepak Kochhar were detained by the Central Bureau of Investigation (CBI) but were given temporary bail by the Bombay High Court in January 2023. The High Court, in a significant ruling in February 2024, found their arrest to be illegal and an abuse of authority.
