Ex-ICICI CEO Chanda Kochhar's Husband Arrested In Money Laundering Case: All You Need To Know

For years, former ICICI Bank CEO Chanda Kochhar was seen as a role model for many in the industry, as someone who made it big in a stage dominated by men.

But things have changed drastically now and she had to step down her post in 2018 in disgrace and along with her industrialist husband is accused of money laundering misusing her position in the bank to sanction loans to Videocon Group.

bccl/file

The ED had filed the money-laundering case in January 2019, after the Central Bureau of Investigation booked the Kochhars, Videocon Group chairman Venugopal Dhoot and six others over alleged quid pro quo in loan transactions between ICICI Bank and Videocon. The CBI had accused Chanda Kochhar of receiving a kickback through her husband from Videocon for sanctioning loans.

The Enforcement Directorate on Monday arrested Chanda's husband Deepak Kochhar in connection with the ICICI Bank loan case.

bccl/file

'Loan refinanced'

During the investigation it was revealed that loans were refinanced and new loans aggregating to Rs 1,730 crore sanctioned to Videocon Industries Ltd (VIL) and its group companies and these loans became non-performing assets (NPA) for ICICI Bank on June 30, 2017.

The investigation further revealed that an amount of Rs 64 crore, out of the loan of Rs 300 crore sanctioned by a committee headed by Chanda Kochhar to Videocon International Electronics Ltd, was transferred to Nupower Renewables Pvt Ltd (NRPL, earlier known as NuPower Renewables Ltd, a company of Deepak Kochhar) by VIL on September 8, 2009, just one day after disbursement of loan by the ICICI Bank.

Further, net revenue of Rs 10.65 crore was generated by NRL from these tainted funds. Therefore, proceeds of crime amounting to Rs 74.65 crore were transferred to/generated in NRPL. The investigation also revealed that Chanda Kochhar and her family acquired an apartment in Mumbai owned by one of the Videocon group companies, by way of acquiring that company through her family trust at a nominal price by creating book entries.

bccl/file

Financial shortcomings

Accordingly, assets amounting to Rs 74.54 crore held in the name of Nupower Renewables Pvt Ltd, its subsidiaries, the flat located at Mumbai (book value of Rs 3.5 crore), and amount of Rs 10.5 lakh already seized by ED from company of Deepak Kochhar, totalling to Rs 78.15 crore being proceeds of crime have been provisionally attached by ED under PMLA.

Deepak Virendra Kochhar is the co-founder and Chief Executive Officer of NuPower Renewables which was set up in December 2008. NuPower Renewables was started as a joint venture between Videocon Group's Venugopal Dhoot family and the Kochhar and Advani families. Mahesh Advani is the brother of Chanda Kochhar. When the company was established, Chanda Kochhar was the CFO and Joint MD at ICICI Bank.

file image

Before the setting up of NuPower, Deepak was a financial services entrepreneur. He has been a Director of NuPower Renewables Pvt Ltd since December 24, 2008. He studied Masters in Finance from the Jamnalal Bajaj Institute of Management Studies, Bombay University. And during his studies at Jamnalal Bajaj Institute of Management Studies, he met Chanda Advani (Chanda Kochhar's maiden name).

Earlier this year, the ED provisionally attached Rs 78.15 crore worth movable and immovable assets in possession of ICICI Bank's former Managing Director and CEO, her husband, and the companies owned/controlled by him.