Trouble seems to be mounting for ICICI Bank’s CEO and MD Chanda Kochhar and her family. The CBI has issued a “lookout Circular (lOC)” notice against Chanda, her husband Deepak Kochhar, and Videocon chief Venugopal Dhoot. Dhoot is accused of investing 10 per cent of Rs 3,250 crore loan given to his companies by ICICI Bank into a firm allegedly promoted by Deepak Kochhar.
The development follows the CBI questioning of Chanda Kochhar’s brother-in-law Rajiv Kochhar in Mumbai in connection with the ICICI Bank-Videocon loan issue. The CBI grilled Rajiv Kochchar for nine hours for the second consecutive day on Friday as he was asked to present a few documents which are required in the enquiry into the case.
The lOC was sent at the behest of the CBI which last week filed a preliminary enquiry case against Deepak Kochhar and Venugopal Dhoot.
Rajiv Kochhar, brother of Deepak Kochhar and promoter of Avista Advisory Services, was detained at Mumbai airport on Thursday evening when he was leaving for Singapore on a business trip. The lOC is an internal circular which empowers the investigating agency to arrest or restrict the person under investigation. Sources said that the lookout notices have been issued to ensure the Kochhars don’t leave the country.
The agency is expected to call Chanda Kochhar for recording of statement soon in this case. The CBI officials refused to say anything on records on this matter.
The pre-emptive move on the part of the investigative agency comes in the wake of a series of economic offenders fleeing the country. Nirav Modi refused to return to India from Hong Kong despite repeated notices by the CBI, Income Tax department and the Enfor-cement Directorate. lalit Modi has invested millions of pounds to get a residency status in the UK, and Vijay Mallya is digging his heels in, also in the UK. Arms dealer Sanjay Bhandari is also believed to be in the UK.
Sources said the CBI is probing Rajiv Kochhar’s link over allegations pertaining to his Singapore-based company Avista Advisory’s dealings with the ICICI Bank. The bank, however, has denied its engagement with Avista for any services ever. The CBI on Thursday questioned Rajiv Kochhar for over five hours in connection with the case.
He was on Thursday stopped at Mumbai airport by immigration authorities around 11 am while he was about to leave for Singapore. later, he was handed over to CBI which brought him to its Bandra office for questioning in connection with its PE against Deepak Kochhar and Venugopal Dhoot.
Earlier, the CBI had conducted a preliminary probe by questioning select ICICI Bank officials in connection with the allegation that a quid pro quo was involved in the bank issuing a Rs 3,250 crore loan to the Videocon Group in 2012.
Probe by the CBI revealed that ICICI bank had mandated Singapore-based Avista Advisory to restructure foreign currency denominated debt of seven companies, including those of Videocon group.
Avista Advisory Group was founded by Rajiv Kochhar.
Deepak Kochhar is the co-founder and CEO of NuPower Renewables, a firm originally founded as a 50-50 joint venture between the family of Videocon Industries limited chief Venugopal Dhoot and the Advani family. Around that time, Chanda Kochhar was the Chief Financial Officer (CFO) and Joint MD at ICICI Bank.
Central investigators swung into action when an ICICI shareholder, Arvind Gupta, accused the Kochhars of ‘wrongful personal gains’ after the private lender allegedly sanctioned loans worth Rs 3,250 crore to private firms owned by Videocon Industries limited. But Videocon’s Venugopal Dhoot has denied any dealings with Deepak Kochhar, beyond investing Rs 2.5 lakh in Deepak Kochhar’s renewable energy business. He termed reports of lending Rs 64 crore to NuPower Renewables and of subsequent transactions resulting in Deepak Kochhar gaining full ownership of the company as baseless. These reports have led to allegations of possible conflict of interest and quid pro quo against Chanda Kochhar.
last week, the ICICI Bank board came out in support of Chanda Kochhar, saying it had full faith and confidence in her. It described reports against her regarding credit disbursement to Videocon Group as “malicious and unfounded rumours”. The board also reviewed the bank’s internal processes for credit approval and found them robust, the private sector lender had said in a statement.