Chanda Kochhar Faces Setback: Appellate Tribunal Upholds ED’s Money Laundering Case
In a major blow to former ICICI Bank CEO and MD Chanda Kochhar, an appellate tribunal has upheld the Enforcement Directorate’s (ED) 2020 order related to a money laundering case involving the Videocon Group. The tribunal observed a prima facie case of money laundering against Kochhar and her husband Deepak Kochhar, centering around a controversial loan sanctioned by ICICI Bank.
The case stems from a Rs 300 crore loan granted by ICICI Bank to the Videocon Group in 2009, just months after Chanda Kochhar took charge as CEO. The ED had alleged that a part of the loan—Rs 64 crore—was later transferred to a company linked to her husband, constituting a quid pro quo arrangement.
Key Observations by the Appellate Tribunal
- Prima Facie Case of Money Laundering
The tribunal concluded that there exists a prima facie case of money laundering involving Kochhar and her husband, noting irregular financial transactions between ICICI Bank, Videocon, and companies linked to Deepak Kochhar.
- Proceeds of Crime Identified
Under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA), the tribunal held that transactions involving the flat in Churchgate and the Rs 64 crore allegedly transferred to NuPower Renewables Pvt Ltd (NRPL) amounted to proceeds of crime.
- Attachment of Property Upheld
Reversing an earlier ruling of the Adjudicating Authority, the tribunal allowed the ED to retain attachment of Flat No. 45 at CCI Chambers (Churchgate), wind assets, and Rs 10.5 lakh in cash under the Prevention of Money Laundering Act (PMLA).
- Quid Pro Quo Established
The tribunal found merit in ED’s allegation that the Rs 300 crore loan sanctioned in August 2009 was followed by a Rs 64 crore transfer from Videocon International Electronics Ltd (VIEL) to NRPL—a company managed by Deepak Kochhar.
- Use of Bribe Money for Wind Assets
The Rs 64 crore, the tribunal noted, was used by NRPL—then headed by Deepak Kochhar—to purchase wind power projects with a capacity of 33.15 MW.
- Flat Transaction Dubious
Though the Kochhars claimed ownership of the Churchgate flat since 1995, the tribunal noted discrepancies in the timeline. The flat, initially mortgaged and handed over to a Videocon entity in 2009, was later transferred to Deepak Kochhar’s family trust in 2016 for just Rs 11 lakh—despite a much higher market value.
“When the value of the flat was Rs 5.25 crore in 1995, its appreciated value in 2016 must have been many times more… the respondents have failed to justify the transaction at the meagre amount,” the tribunal stated.
- Dhoot-Kochhar Links Under Scrutiny
The tribunal highlighted the long-standing association between the Kochhars and Videocon promoter Venugopal Dhoot. It noted that Dhoot and Deepak Kochhar co-founded NRPL in 2008 and had links with multiple entities now under investigation.
- Kochhar's Defence Rejected
Chanda Kochhar’s claim that she was not solely responsible for the loan approval, as it was sanctioned by a committee, was rejected. The tribunal also dismissed her distancing from the Rs 64 crore transaction and her husband’s ownership of NRPL.
The tribunal’s ruling bolsters the ED’s case and marks a significant development in the high-profile corporate and financial misconduct allegations involving ICICI Bank’s top leadership and the Videocon Group.
