InvestorQ : Why has Deepak Kochhar been arrested and what does that mean for ICICI Bank?
Moii Chavate made post

Why has Deepak Kochhar been arrested and what does that mean for ICICI Bank?

Answer
user profile image
Tisha Malhotra answered.
3 weeks ago


Deepak Kochhar is one of the key accused in the Videocon-ICICI loan fraud case, where Chanda Kochhar the former CEO of ICICI Bank was alleged to have given a quid pro quo to Videocon through her husband. Deepak was arrested under the PMLA.

The story goes something like this. In September 2009, ICICI Bank sanctioned a loan of Rs.300 crore to Videocon International, when his wife Chanda Kochhar was the chairman of the sanctioning committee of ICICI Bank. This is where the conflict of interested started.

It was also noted that soon after that, Videocon Industries had transferred Rs.64 crore to NuPower Renewables which was a company owned and managed by Deepak Kochhar. The arrest was necessitated as Deepak Kochhar was not cooperating with the investigations.

Currently, the CBI and ED, are probing 6 loans worth Rs.1875 crore in all, given to Videocon Group between 2009 and 2011 at a time when the group was already in the doldrums. Under Chanda, ICICI Bank had sanctioned Rs.3250 crore to Videocon group.

The impact on ICICI Bank is likely to be limited Chanda has been removed from the bank more than a year ago. The bank has been ring-fenced from the deals that the former CEO had done at a personal level with the Videocon group.