A preliminary examination conducted by Securities and Exchange Board of India (SEBI) has favoured adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of listing disclosure norms regarding ‘conflict of interest’ in her husband’s business dealings with the Videocon Group.
A senior official has said that the ICICI Bank may face a penalty of up to Rs. 25 crores under the relevant SEBI regulations, while the fine for Ms. Kochhar may go up to Rs. 1 crore besides other penal actions.
A formal adjudication process will commence after taking into account the replies to the show-cause notice issued to the Bank, Ms. Kochhar and others in the matter.
Ms. Kochhar has gone on leave till the completion of the enquiry but would continue to be MD and CEO as per the bank’s regulatory filing. In her absence, the group’s life insurance arm head Sandeep Bakshi has been appointed as a whole time director and COO.
The issue revolves around the extending of Rs. 3,250 crore loan to Videocon Group by the bank in 2012 and the involvement of Kochhar’s family members in the restructuring of the loan.
Enough material to proceed against Kochhars: PMLA court
Judiciary
Feb 05, 2021
Gautami Chakravarty
(
Editor: Ekta Joshi
)
3 Shares
In an order that was made available on Wednesday 3rd February, 202, Justice A A Nandgoankar said, "After going through the submissions, written complaints and statements recorded under PMLA, it appears that Chanda Kochhar had misused her official position in granting loan to accused Dhoot and/or Videocon group companies."On January 30, 2021 the special court for Prevention of Money Laundering Act had summoned Kochhar, her husband Deepak Kochhar, Videocon Group promoter Venugopal Dhoot and other...
“Prima Facie Misused her Official Position”: Former ICICI Bank MD and CEO Chanda Kochhar and Husband summoned by PMLA Court [READ ORDER]
Judiciary
Feb 05, 2021
ADITI AGGARWAL
(
Editor: Ekta Joshi
)
9 Shares
An investigation complaint was filed by the Enforcement Directorate in the multi-crore scam (under the Prevention of Money Laundering Act, 2002) against former ICICI Bank MD and CEO Chanda Kochhar and 10 others, including the Videocon Industries Ltd's Managing Direction VN Dhoot, Kochhar and her husband.Taking the cognizance of the same, a special court observed that Chanda Kochhar had prima facie misused her official position in granting loans to accused Videocon group of companies and...
Facebook Comments