Chanda Kochhar, former managing director and chief executive officer of ICICI Bank is again in the top news.

The Reserve Bank of India (RBI) slams the case claiming to have “misled” by Chanda Kochhar in the year 2014 on a funding case of not less than $365-million. The loan was disbursed by the ICICI bank to Essar firm.
She is held for violating her fiduciary duty under the Companies Act 2013 and SEBI listing norms by making “inaccurate and misleading statements” to the RBI.

The approval of the loan to Essar Steel Ltd, Mauritius was approved in the minutes of the credit committee meeting of ICICI Bank. The loan was approved for the infusion of funds into Essar Steel Minnesota only. The investigation revealed, that the funds provided to Essar Steel Mauritius through the loan were allegedly used to make payments to Essar Projects. Whereas, the invoices for the same was raised in the name of Essar Steel Minnesota. Eventually, Essar Projects transferred these funds to Essar Global Fund Ltd. Essar Global Fund Ltd is the promoter of Essar Steel Minnesota. This fund which finally used it to service its debt obligation to ICICI Bank.

Back in the year 2014, RBI had already questioned over ICICI Bank’s approval for an increase in Essar Steel Minnesota’s project capacity of manufacturing steel pellets. The raised capacity was from 4.1 MTPA (metric tonnes per annum) to 7 MTPA. However, ICICI bank had submitted enough records to RBI to convey the fact that "although the bank had approved the capacity increase, it had not “participated in any additional funding.”

In 2012, while Chanda was as a ICICI Bank chief, the Enforcement Directorate (ED) held her and her husband, Deepak Kochhar in a case of alleged money laundering and quid-pro-quo in granting loans to Videocon group. This loan case was approved for the amount of Rs 3,250 crore from ICICI Bank.

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