Asia Times | Kochhar's husband had links with Videocon

Former ICICI Bank CEO Chanda Kochhar, who had to resign following allegations of nepotism and conflict of interest, lost the trust of the bank's board of directors after her husband Deepak acknowledged to have links with the controversial Videocon group.

ICICI Bank had previously granted a loan of 32.5 billion rupees ($ 457.3 million) to Videocon and Chanda Kochhar was one of the members of the bank's sanction committee.

Shortly after the loan was disbursed, Videocon's General Manager, Venugopal Dhoot, made a loan of 640 million rupees ($ 9 million) to NuPower Renewable Ltd, headed by Deepak Kochhar. Critics claimed that it was a counterparty index between the two.

The ICICI Bank loan to Videocon was subsequently declared non-performing due to defaults.

Deepak Kochhar reportedly disclosed his links with Videocon in a letter to the ICICI Bank Board of Directors in April 2018. After that, the board of directors lost confidence in Chanda Kochhar and her explanations n & # 39, have hardly aroused the interest of its members, reports the Economic Times.

This decision was followed by a directive from the Securities and Exchange Board of India, the regulator of the financial markets, to the ICICI Board of Directors, inviting him to ask Deepak Kochhar for an official letter. detailing his relationship with the Videocon group.

The letter compelled the commission to confront it and revert to its revelations in accordance with the bank's ethics rules.

Allegations refused

During her interrogation by the Enforcement Branch (DE), Chanda Kochhar stated that she was not the only one responsible for sanctioning loans to corporate clients and that it was This was a collective decision of the entire credit committee.

She also told the investigators that she was unaware of her husband's business relationship with the Videocon group and its general manager.

The ED is investigating bribes allegedly paid by businesses for sanctioned loans. Another round of questions is likely next week.

Until now, no such angle of view has been found in the case of other members of the committee who were part of the Sanction Committee.