₹1,033 cr due from Videocon Group not wrongful loss: Bank
ICICI Bank granted six loans to Videocon group companies between June 2009 to October 2011. Later, these loans were restructured by a fresh loan of ₹1,730 crore. The account of Videocon was declared NPA on June 30, 2017, with an outstanding of ₹1,033 crores, the CBI chargesheet stated
Mumbai: The ICICI Bank considers the outstanding amount of ₹1,033 crore due from Videocon Group as a “business loss” and not a wrongful loss caused by the group. Though the bank has granted sanctions to prosecute Chanda Kochhar, it has maintained that “due process” was followed while granting the loans to Videocon Group firms.
ICICI Bank granted six loans to Videocon group companies between June 2009 to October 2011. Later, these loans were restructured by a fresh loan of ₹1,730 crore. The account of Videocon was declared NPA on June 30, 2017, with an outstanding of ₹1,033 crores, the CBI chargesheet stated.
The chargesheet contains the statement of the bank’s legal head, Nilanjan Sinha. In his statement, recorded on August 18, 2021, he said, “Videocon had serviced the debt from 2012 to 2017, and due to failure in business, Videocon could not pay the restructured loan of ₹1,730 crore as the account of Videocon became NPA. ICICI Bank considers it as a business loss and not a wrongful loss.”
The bank had in its letter dated July 9, 2021, addressed to the CBI, had claimed that the allegations of wrongful loss and violation or contravention of Rules and Policy as mentioned in the CBI FIR were not factually correct.
“The repayment of six standalone loans were received into our bank account,” the letter said. “Therefore, these loans were extinguished, and as a result, there was no wrongful loss to the bank. We further state and submit that due process was followed by the bank while granting the loans.”