Kochhar Saga: Rs1,730 Crore Sanctioned by ICICI Bank Loan Committees to Videocon Associates, To Help Videocon Pay Back an Earlier Term Loan, Turned Bad
IANS 26 December 2022
The Centre Bureau of Investigation (CBI) has learnt in the Chanda Kochhar case that loans which were sanctioned by ICICI Bank to Videocon group companies were adjusted in RTL (rupee term loan) of Rs1,730 crore. In 2012, the existing outstandings of the six accounts of Videocon group companies were adjusted in RTL of Rs1,730 crore sanctioned under refinancing of domestic debt. The accounts of Videocon Industries Ltd (VIL) and its group companies were declared non-performing assets (NPAs) in June 2017.
This was revealed after a special CBI court on Saturday remanded former ICICI Bank chief executive officer& managing director (CEO&MD) Chanda Kochhar and her husband Deepak Kochhar to CBI custody till 26th December. CBI had arrested the couple on Friday in connection with their alleged role in the ICICI Bank-Videocon money laundering case. Venugopal Dhoot of Videocon group is a co-accused in the case.
During the preliminary inquiry, CBI has learnt that Chanda Kochhar sanctioned credit facilities of Rs3,250 crore by violating the rules of Banking Regulation Act, RBI guidelines and credit policy.
That various sanctioning committees of ICICI Bank sanctioned loans to Videocon group companies, namely, Millennium Appliances India Ltd (MAIL), RTL of Rs175 crore on 30 June 2009; loan of Rs240 crore to Sky Appliances Ltd (SAL) on 17 November 2010; loan of Rs110 crore to Techno Electronics Ltd (TEL) on 17 November 2010; loan of Rs300 crore to Applicomp India Ltd (AIL) on 30 May 2011; and loan of Rs750 crore to VIL on 31 October 2011.
These loans amounting to Rs1,575 crore were sanctioned by various committees.
The loans sanctioned to SAL, TEL and AIL were for the purpose of enabling them to repay the unsecured loan availed by these companies from VIL. It also sanctioned a loan to VIL for refinancing the existing loans of the company.
Sandeep Bakshi, K Ramkumar, Sonjoy Chatterjee, NS Kannan, Zarin Daruwala, Rajiv Sabharwal, KV Kamath and Homi Khusrokhan, all senior officials of ICICI Bank, were part of the committees which sanctioned the loans.
"These loans turned non-performing assets (NPA) due to which the ICICI Bank suffered losses and the accused made wrongful gains. ICICI Bank had also released the security available in the form of FDR of Rs 50 crore in the accounts of Sky Appliances Ltd and Techno Electronics Ltd without any justification," CBI said.
Chanda Kochhar took over the charge of ICICI Bank as  MD&CEO on 1 May 2009. The aforesaid credit limits to the above said Videocon group companies were sanctioned after she assumed charge as the MD&CEO of the bank.
These loans were sanctioned by different sanctioning committees in which Chanda Kochhar was one of the committee members.
The committees sanctioned RTL of Rs300 crore to VIEL and Rs750 crore to VIL.
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