In an unusual move, Law Firm Cyril Amarchand Mangaldas has withdrawn its 2016 report that had given a clean chit to former ICICI Bank chief executive Chanda Kochhar with regard to nepotism allegations against her, the sources revealed.
In a regulatory filing on October 23, 2018, ICICI Bank said the clean chit given to Ms. Kochhar in March this year was based on the inquiry report of the law firm which is now saying that the same should no longer be treated as valid.
ICICI Bank, in a filing, said the bank had expressed confidence in Ms. Kochhar on the basis of the inquiry report of the law firm which was engaged in 2016 to probe the allegations of nepotism and conflict of interest against her.
“The law firm submitted its report in December 2016 stating that it had found no evidence of nepotism and conflict of interest on the part of Ms. Kochhar and accordingly the matter was treated as closed,” ICICI Bank said.
When fresh allegations surfaced in March 2018 on the same matter, the board of the bank, on the basis of inquiry report of the law firm, issued a statement expressing confidence in Ms. Kochhar, the then CEO and MD.
However, due to additional whistle-blower allegations and further information made available to the bank, the board of directors of the bank announced a fresh inquiry on May 30, 2018.
“Further, the bank informed the law firm about the said developments, whereupon the law firm expressed that its earlier report would no longer be valid,” ICICI Bank said.