Will challenge Chanda Kochhar's interim bail in Bombay HC: CBI tells SC
Chanda Kochhar and her husband were granted bail by the Bombay HC in January in connection to Videocon-ICICI Bank loan fraud case.
The Central Bureau of Investigation (CBI) on Friday informed the Supreme Court that it will move an application in the Bombay High Court seeking to cancel the interim bail granted to former ICICI Bank CEO Chanda Kochhar and her husband, Deepak Kochhar, in a loan fraud case, according to a Live Law report.
Kochhar and her husband were granted bail by the Bombay High Court in January after their arrest by the CBI on December 23, 2022, in connection with the Videocon-ICICI Bank loan fraud case. The CBI then contested the high court's January 9 order, which provided interim relief to the Kochhars. Earlier, the Supreme Court had queried the CBI about not objecting to multiple extensions of the two-week interim bail granted in January.
The Bombay high court criticised the the central agency for what it deemed a "casual and mechanical" arrest of the couple in the loan fraud case, granting them interim bail and questioning the legality of their detention. The Kochhars had challenged their arrest, asserting it was “illegal and arbitrary”, seeking release on bail through an interim order.
The high court ruled that the Kochhars' arrest did not comply with legal provisions, granting them bail until the final disposal of their petitions. It deemed the grounds for their arrest, as stated in the arrest memos, unacceptable and contrary to lawful arrest reasons.
A look-back at Chanda Kochhar's loan-fraud case
In May 2018, ICICI Bank initiated an investigation against Kochhar following a complaint about her alleged role in granting out-of-turn loans worth ₹3,250 crore to the Videocon Group that benefited her husband Deepak Kochhar. The CBI accused these actions of violating banking regulations and RBI guidelines.
Subsequently, Kochhar took leave and later opted for early retirement, which ICICI Bank approved. The bank considered her departure as 'Termination for Cause' and sought RBI's mandatory approval for her termination under RBI Act provisions.
They were then arrested by the central agency on December 23, 2022.
In addition to the Kochhars, the CBI arrested Videocon group founder Venugopal Dhoot. The agency implicated Chanda Kochhar, Deepak Kochhar, Dhoot, and several firms in an FIR, citing criminal conspiracy and PCA violations under IPC sections.
Nupower Renewables, managed by Deepak Kochhar, was named in the FIR. The CBI alleged that Dhoot invested ₹64 crore in Nupower Renewables through Supreme Energy Pvt Ltd (SEPL) and routed SEPL to Pinnacle Energy Trust, managed by Deepak Kochhar, between 2010 and 2012, suggesting a quid pro quo arrangement.
The Kocchars argued that no sanction had been obtained from relevant authorities prior to their arrest, as is required under provisions of the Prevention of Corruption Act. Chanda Kochhar's lawyers also said she had been arrested after a 'perfunctory interrogation' and that a female officer was not present at the time of her arrest, as is mandated by law.
(With inputs from agencies)