Supreme Court Overturns Bombay HC Ruling
NEW DELHI (Economy India): In a significant development, the Supreme Court has issued a notice to former ICICI Bank CEO and Managing Director Chanda Kochhar in the Videocon-ICICI Bank loan fraud case. This comes after the Central Bureau of Investigation (CBI) filed a petition challenging the Bombay High Court’s earlier decision, which had declared Kochhar’s arrest as unlawful. The Bombay High Court had granted interim bail to Chanda Kochhar in January 2023.
Bombay High Court’s Criticism
In February 2023, a bench comprising Justice Anuja Prabhudessai and Justice N.R. Borkar of the Bombay High Court had criticized the arrest of Chanda Kochhar and her husband, Deepak Kochhar, in the loan fraud case. The court stated that the arrest was made without due consideration of facts and legal principles. The bench also termed it as a misuse of CBI’s authority.
The case dates back to December 2017 when the Central Bureau of Investigation (CBI) initiated a preliminary investigation against Chanda Kochhar and others. Deepak Kochhar, her husband, was summoned by the CBI in September 2018 and was interrogated multiple times.
On January 22, 2019, the CBI filed an FIR against Chanda Kochhar and her husband, alleging irregularities between 2009 and 2012. Following this, the Enforcement Directorate (ED) registered a case under the Prevention of Money Laundering Act (PMLA) on January 31, 2019. The case involves an alleged scam amounting to ₹1,794 crores.
In May 2020, both Chanda and Deepak Kochhar were questioned by the ED in connection with loans amounting to crores of rupees, which ICICI Bank had extended to Videocon between 2009 and 2011, during Chanda Kochhar’s tenure as MD and CEO of the bank. Following the CBI’s FIR, Deepak Kochhar was arrested by the ED.
This case continues to unfold as the Supreme Court’s notice to Chanda Kochhar marks the latest development in the ongoing legal battle.
Economy India
