CBI hot on Chanda Kochhar trail

On Thursday, India's premier anti-corruption agency CBI registered a case against the then MD and CEO of ICICI Bank, the once high-profile Chanda Kochhar, two Managing Directors of separate private companies, four Mumbai-based private companies and other unknown private persons and unknown public servants under section 120-B (conspiracy) read with section 420 (cheating) of IPC read with Section 7, Section 13(2) (criminal misconduct) read with 13(1)(d) (pecuniary advantage) of the Prevention of Corruption Act. At the very kernel of the case is that on August 26, 2009, a loan of Rs 300 crore was sanctioned to a Mumbai-based private company in contravention of the rules and policy by the sanctioning committee.

It was further alleged that Chanda Kochhar, the then MD and CEO, ICICI Bank, being the head of the sanctioning committee, who in criminal conspiracy with other accused to cheat ICICI Bank, dishonestly and by abusing her official position sanctioned this loan in favour of the said Mumbai-based private company. The said loan was disbursed by ICICI Bank on September 7, 2009. On the very next day, the MD of said group of companies transferred Rs 64 crore to his other company which was further transferred on the same day to one other company which was managed by the MD of this private company based in Mumbai (a relative of then MD & CEO of ICICI Bank).

After transferring the funds to his company, the MD of Mumbai-based group of private companies also transferred the control of this company to a Trust managed by the MD of the other private company based in Mumbai (a relative of then MD & CEO of ICICI Bank) as Managing Trustee. During June 2009 to October 2011, another five loans amounting to Rs 1,575 crore were also sanctioned to the said group companies by various sanctioning committees of ICICI Bank in violation of Credit Policy of the bank.

Existing outstanding in the accounts of these private group companies were adjusted in Rupee Term Loan of Rs 1,730 crore sanctioned by ICICI Bank under refinance of domestic debt under consortium arrangement on April 26, 2012. The account of Mumbai-based private company and its group companies were declared Non Performed Asset (NPA) w.e.f. June 30, 2017.

Searches are being conducted on Thursday at four places in Mumbai and Aurangabad.