In a significant development in the ICICI-Videocon loan fraud case, an appellate tribunal has ruled that former ICICI Bank CEO and MD Chanda Kochhar was guilty of accepting a Rs 64 crore bribe from the Videocon Group, routed through her husband Deepak Kochhar. The order, passed on July 3, supports the Enforcement Directorate’s (ED) asset attachment and overturns earlier relief granted in 2020.
In this article, we will delve into the tribunal’s damning findings against Chanda Kochhar, the intricate money trail linking ICICI Bank and Videocon, and the wider implications for corporate ethics and regulatory oversight in India’s banking sector.
Credits: Mint
Rs 64 Crore: Not Investment, But a Bribe
According to the tribunal’s findings reported by Times of India, the Rs 64 crore was not a legitimate investment but a quid-pro-quo for a Rs 300 crore loan sanctioned by ICICI Bank to Videocon. The tribunal observed that the money was routed through Videocon’s entity SEPL to NuPower Renewables (NRPL)—a company controlled by Chanda Kochhar’s husband, Deepak Kochhar.
What made the tribunal’s findings particularly damning was the ownership trail. While NRPL was officially shown as being owned by V.N. Dhoot, CMD of Videocon, even Dhoot admitted that the actual control lay with Deepak Kochhar. The tribunal concluded that this transaction clearly indicated bribery, not a business deal.
Tribunal Overturns 2020 Relief Order
The ruling reverses an earlier 2020 order by the adjudicating authority, which had dismissed the ED’s attempt to attach assets worth Rs 78 crore. Calling the earlier decision flawed and factually inconsistent, the tribunal stated:
“The adjudicating authority ignored material facts… We cannot endorse findings that go against the record.”
With this, the ED’s case receives a major boost, as the tribunal has validated its claims and the evidence presented under the Prevention of Money Laundering Act (PMLA).
Violations of ICICI Bank Norms Flagged
One of the tribunal’s most serious concerns was the conflict of interest and policy violations in the loan approval process. Chanda Kochhar was part of the ICICI Bank internal committee that approved the Rs 300 crore loan to Videocon. However, she failed to disclose her family’s financial connections to the borrower—a clear breach of corporate governance norms.
“The loan was sanctioned in violation of ICICI’s internal policies, and the conflict of interest was not disclosed by Chanda Kochhar,” the tribunal observed.
This oversight—or deliberate concealment—was central to the tribunal’s conclusion that there was wrongdoing at the highest levels of the bank.
PMLA Statements Held as Valid Evidence
In a critical legal affirmation, the tribunal ruled that statements recorded under Section 50 of PMLA are admissible as evidence. These statements, recorded during the ED’s probe, formed the backbone of the case and were found to corroborate the flow of funds and the bribery link.
“The ED provided sufficient material to support the allegation that the Rs 64 crore was a bribe for the loan sanction,” the order said.
This makes it harder for the Kochhars to refute the charges in upcoming legal proceedings.
Credits: Financial Express
Path Cleared for Further Action
The tribunal’s order paves the way for accelerated legal action, possibly including a fresh charge sheet and stricter enforcement measures. It lends strong judicial backing to the ED’s position and reignites scrutiny over corporate governance failures in India’s banking sector.
What Lies Ahead
While the Supreme Court has deferred the hearing on the CBI’s plea against the Kochhars’ bail, this appellate tribunal order could influence future judicial outcomes. Chanda Kochhar and Deepak Kochhar already face criminal proceedings for corruption, criminal conspiracy, and money laundering.
As this case progresses, it continues to spotlight the risks of crony capitalism and ethical lapses in India’s corporate landscape—issues that demand systemic reforms and stronger oversight mechanisms.
