• Karnavati University Garba Mahotsav. Click here to Book Now
  • Ph.D. 2023-24 Admissions Open Now! (January 2024 Batch) Click Here to apply +91 9033001244
  • UID Admissions 2024-25 Application Window Open CLICK HERE to Apply Call 9266663225 to know more.
  • Ph.D. 2023-24 Admissions Open Now! (January 2024 Batch) Click Here to apply +91 9033001244
  • KU Admissions FEE Payment Click Here
  • Karnavati University invites applications for teaching positions Click here for details

KUAT 2022-23 Admissions Open Now! Click here to apply +91 9667048555

Announcement Admission

ICICI Bank Loan Fraud Case: A Study

June 22, 2020

The ICICI Bank Loan Fraud Case in which federal investigative agencies have named Miss Chanda Kochar, former Managing Director (MD) of ICICI Bank, her husband Deepak Kochar, her brother in law Rajeev Kochar and Videocon chief Venugopal Dhoot is taking interesting turn. The Loan Fraud was highlighted by a whistleblower name Arvind Gupta. He has written a letter to the Prime Minister Office (PMO) somewhere in the year 2018. In the letter, he has alleged quid pro quo transaction between ICICI Bank (headed by Chanda Kochar) and Venugopal Dhoot, head of Videocon. The gist of the allegation made by Mr Arvind Gupta was that certain loan amounts to the tune of Rs 600 Crore ( approx figure) were sanctioned by ICICI Bank in favour of Videocon company with Chanda Kochar being head of the Sanctioning Committee. As a result of this loan sanction, Gupta alleges that Venugopal Dhoot transferred the ownership of NuPower Renewables to Deepak Kochar, the husband of Chanda Kochar for Rs 64 Crore. Gupta alleges that this is just once incident of fraud committed by Chanda Kochar. As a result of this particular loan incident, ICICI bank suffered huge loss as these loan amounts turned into bad loans. Gupta alleges criminal breach of trust against Chanda Kochar and also the violations of provisions of Prevention of Corruption Act, 1988. As per the Supreme Court Judgment, the bank employees (whether public or private) are “Public Servant” within the meaning of Prevention of Corruption Act, 1988. Arvind Gupta further alleges that the same modus operandi was adopted by Chanda Kochar in granting loans on quid pro quo basis as a result of which ICICI Bank suffered huge losses. Gupta demanded a full fledged enquiry. After sitting over the letter for one year, Government asked the federal agencies to conduct investigation. Both Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have registered respective FIRs after conducting preliminary investigation. The ED had provisionally attached the properties of Kochars under the Prevention of Money Laundering Act, 2002. The Kochars have also been summoned to ED Office in Mumbai for questioning. As far as stand of ICICI bank was concerned, initially it refuted the charges made against Kochar but due to huge public pressure, it set up an internal inquiry committee headed by Justice B N Sri Krishna, former Supreme Court Judge. The Krishna committee indicted Chanda Kochar for loan fraud case in its report and substantially found the allegation of Arvind Gupta to be true. As a result, the ICICI Bank has treated the resignation of Chanda Kochar from the post of Managing Director as dismissal for the service forfeiting all the privileges granted to her. The Kochars have moved Bombay High Court against ICICI Bank. On the other hand, CBI and ED is conducting investigations and trying to connect all dots before they file charge sheet against Kochars and Dhoot. It will be interesting to see how the case unfolds. But one thing is certain, the case reflects the fact that our corporate governance standard in Banking sector is not up to mark to prevent such kinds of fraud and conflict of interest where huge amount of public money is involved both in form of equity and debt.

Dr. Amit Bhaskar, Associate Professor, Unitedworld School of Law (UWSL)

Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.

Related Blogs

Navratri and the Nine Forms of Goddess Durga
September 20, 2023

Navrati is one of the most significant Hindu festivals celebrated in India. There are total four Navratri in a year – Sharadiy Navratri, Chaitra Navratri, Magh Navratri and Ashadh Navratri. Sharadiy Navratri (શારદીય નવરાત્રી)2023 is scheduled from 15th October till 24th October 2023. Navratri, a vibrant and spiritually significant Hindu festival, is celebrated with immense […]

Read More
The role of white hat hackers in preventing cybercrime. Useful insights for students planning to pursue integrated masters in cyber security
July 28, 2023

In an era dominated by digitalisation, the prevalence of cybercrime has seen a significant surge. Hackers take advantage of vulnerabilities in computer systems, posing risks to sensitive data, financial security, and even national security. However, there exists a distinctive group of individuals called white hat hackers who play a vital role in combating cybercrime. White […]

Read More
Influential Designers and Their Impact on the Industry: List by one of the best fashion designing colleges in India
July 26, 2023

The fashion world is an exciting and colourful place where creativity, new ideas, and personal expression thrive. In this ever-changing industry, there are few designers who have made a big impact and become trailblazers. They have redefined fashion, challenged what is considered normal, and pushed the limits of design. These visionary designers have not only […]

Read More