Chanda Kochhar, husband freed from jail in ICICI Bank-Videocon loan fraud case
Chanda Kochhar bail: Bombay HC ruled the arrest of the ex ICICI Bank CEO and MD, and her husband, was not legal.
Ex-ICICI Bank CEO Chanda Kochhar and her husband Deepak - arrested last month in the ICICI Bank-Videocon loan fraud case - walked free this morning after getting bail from the Bombay High Court. Deepak Kochhar was released from Arthur Road Jail and his wife from Byculla Women's Prison.
Their arrest was 'not in conformity with provisions of law', the court had observed, stressing that it is incumbent for police to not only record - in writing - reasons for an arrest, but also for choosing not to take someone into custody.
The court had further held that there must be a direct link between allegedly incriminating material and an investigating officer's belief of the accused's guilt. "… 'reason to believe' must be based on credible material and no decision to arrest can be recorded on fancy or whimsical grounds," the court said.
The court released the Kochhars' - who had challenged their arrest as 'illegal' - on a cash bail of ₹1 lakh each plus similar sureties, and surrender of passports.
READ | Chanda Kochhar, husband - arrested in Videocon loan case - to be freed
"We have held that the petitioners' (Kochhars) arrest was not in accordance with provisions of law and this warrants their release," the court said.
Chanda and Deepak Kochhar were arrested last month by the CBI in a loan fraud case involving Videocon Group promoter Venugopal Dhoot, who has filed a similar plea. The Kochhars were arrested by the Central Bureau of Investigation on December 24. Dhoot was arrested two days later.
READ | Venugopal Dhoot files bail plea in HC, calls his arrest by CBI 'illegal'
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.
The CBI denied violation of statutory mandate in arresting the Kochhars.
READ | CBI arrests ex-ICICI CEO Chanda Kochhar, husband in loan fraud case
The agency admitted the couple appeared as summoned but claimed that evasive replies to questions asked could not be seen as 'cooperation'.
The agency also refuted allegations no woman personnel were present when Chanda Kochhar was arrested, noting that in white collar crimes, accused need not be touched. She was orally informed of her arrest and a woman constable searched her, the said.
The couple had separately also sought temporary bail to attend their son's wedding. However, the court said it would not consider this petition.
According to the CBI, after Chanda Kochhar took over as MD and CEO the bank sanctioned rupee term loans (RTL) worth ₹1,875 crore to six companies of the Videocon Group between June 2009 and October 2011.
One loan - worth ₹300 crore - was allegedly given to Videocon International Electronics Limited when Kochhar was heading the sanctioning committee.
The loan was disbursed September 7, 2009, and, the next day, Videocon Group - via its firm, Supreme Energy Private Limited, transferred ₹64 crore to NuPower Renewables Limited.
That firm was managed by Deepak Kochhar.
The CBI has further claimed that on April 26, 2012, the existing outstanding of the six RTL accounts were adjusted in another RTL of ₹1,730 crore sanctioned to Videocon Industries Limited for 'refinance of domestic debt'.
The account was declared as NPA - non-performing asset - with effect from June 2017, with the outstanding at ₹1,033 crore.
With input from ANI