CBI Begins Initial Probe Against Deepak Kochhar And Videocon Group

A Central Bureau of Investigation (CBI) official gestures after conducting a raid in New Delhi.

(Photo: Reuters)

The Central Bureau of Investigation is conducting an initial enquiry into the dealings between ICICI Bank MD and CEO Chanda Kochhar’s husband Deepak Kochhar, the Videocon group and "unknown others", according to a senior official in the investigative agency, who didn't want to be identified.

However, the CBI is not looking into Chanda Kochhar's involvement in the case currently, the official said.

The investigation is underway to check if loans, which were given to Videocon group by ICICI Bank, was in lieu for transactions between the group and NuPower Renewables Pvt Ltd, a company which was jointly promoted by Videocon group chairman Venugopal Dhoot and Deepak Kochhar.

On Thursday, the board of ICICI Bank expressed its "full faith" in Chanda Kochhar and rejected any question of conflict of interest or nepotism or quid pro quo in sanctioning of loans to the debt-laden group. The bank's Chairman MK Sharma said that Kochhar made all the necessary disclosures but did not specify what disclosures were made in the press conference.

Last week, the Indian Express published an investigation highlighting the financial dealings between the entities related to Videocon Group promoter Venugopal Dhoot and Deepak Kochhar, husband of ICICI Bank CEO Chanda Kochhar.

The transactions, however, were first highlighted by investor Arvind Gupta in 2016.

Gupta wrote to the Prime Minister, the Reserve Bank of India governor and other authorities seeking an inquiry into the dealings. Gupta’s complaint got little or no attention then.

(This article was originally published on BloombergQuint.)