ICICI Bank-Videocon case: Chanda Kochhar paid tax for family trust after CBI's probe

Former ICICI Bank CEO Chanda Kochhar reportedly paid the income tax of ₹1.53 crore on income of ₹3.42 crore received by the family-held trusts that owned a south Mumbai flat, according to the CBI.

According to the English daily Economic Times, the probe agency told the special CBI court that payment was made after a preliminary inquiry (PE) was kicked off against Kochhar and her husband Deepak.

The south Mumbai flat and a loan of ₹64 crore are the two instances of alleged "bribery" claimed by CBI in its probe that Deepak Kochhar received in 2016.

The court has adjourned the matter to 12 July.

According to the CBI, the flat was a quid pro quo as the value of the flat was ₹3.25 crore in 2016, and was transferred to Deepak Kochhar-owned Quality Advisors trust for ₹11 lakh only by a company linked to Videocon Group. The CBI added that a flat of almost the same size in the same society was sold for ₹16 crore in February 2014 and for ₹18.70 crore in 2017. But in October 2016, the flat was transferred to Kochhar for ₹11 lakh only.

Meanwhile, their son also bought a flat in the same building on the same floor in November 2021 for ₹19.11 crore.

Chanda Kochhar was MD and CEO of ICICI Bank between May 2009 and January 2019 in which capacity she was entrusted with the Bank's funds, the CBI told court.

She was liable to discharge such trust in accordance with Reserve Bank of India guidelines and loan policies of ICICI Bank, the CBI argued.

She conspired with the other accused persons to sanction or get sanctioned credit facilities in favour of companies of Videocon Group, the CBI said.

In furtherance of criminal conspiracy, a term loan of ₹300 crore to Videocon International Electronics Limited was sanctioned in August 2009 by the committee of directors headed by Chanda Kochhar.

The loan amount was disbursed through a complex structure involving various companies of Videocon and ₹64 crore was transferred under the garb of investment to NuPower Renewable Limited of her husband Deepak Kochhar, the court was told.

The special public prosecutor further submitted that Chanda Kochhar resided in a flat in Mumbai owned by Videocon Group. The flat was subsequently transferred to her family trust (of which Deepak Kochhar is the managing trustee) for a meager amount of ₹11 lakh in October 2016, while the actual value of the flat was ₹5.25 crore in the year 1996.

Chanda Kochhar accepted/obtained illegal gratification, other than legal remuneration, of ₹64 crore as a motive and also, thereby, misappropriated the Bank's fund for her own use, the CBI submitted.

The CBI also argued that Deepak Kochhar conspired with other accused persons to get credit facilities sanctioned by ICICI Bank in favour of Videocon Group through his wife and to get illegal gratification of ₹64 crore in the garb of investment through a web of transactions.

The Kochhar couple was arrested by the CBI in December last year in connection with the case.

Later, the Bombay High Court granted interim bail to the couple and came down heavily on the CBI for making the arrest in a "casual and mechanical" manner and without application of mind.

The CBI had named the Kochhars and Videocon's Venugopal Dhoot, along with companies Nupower Renewables (NRL) managed by Deepak Kochhar, Supreme Energy, Videocon International Electronics Ltd, and Videocon Industries Limited, as accused in the FIR registered under IPC sections related to criminal conspiracy and provisions of the Prevention of Corruption Act in 2019.

As per the CBI, ICICI Bank had sanctioned credit facilities to the tune of ₹3,250 crore to the companies of Videocon Group promoted by Dhoot in violation of the Banking Regulation Act, RBI guidelines, and credit policy of the bank.