ICICI Bank - Videocon Case: Kochchars Company moved to Delhi HC
Background of the case
The ED had registered the money-laundering case in February last year and CBI booked the Kochhars and Videocon Group, MD Venugopal Dhoot over alleged quid pro quo in loan transactions between ICICI Bank and the conglomerate.
The CBI had accused the former CEO of ICICI Bank, of allegedly receiving "illegal gratification through her husband from Videocon for sanctioning a term loan of Rs 300 Crore.
In March, ED raided the office of Deepak Kochhar at Company’s Registered Office and seized a diary, hard disk and Rs 10.5 lakhs, alleging that proceeds have been laundered.
According to the ED, Rs 64 crore out of a loan of Rs 300 crore sanctioned by a committee headed by Chanda Kochhar to Videocon International Electronics was transferred by the company to NuPower Renewables, owned by her husband, just a day after the bank disbursed the money in September 2009. To which Chanda Kochhar explains that loan approval was a collective decision and not that of an individual.
NuPower Renewables generated net revenue of Rs 10.65 crore utilising the "tainted funds", summing up the total proceeds from the alleged transaction at Rs 74.65 crore. The ED had also claimed that Kochhar family has acquired an apartment in Mumbai from the Videocon Group at a price much below the market rate. The total value of assets acquired summed up to Rs 78.15 crore, "proceeds of crime”.
Deepak Kochhar and Dhoot have denied all the allegations, stating that, "The flat at CCI Chambers was conveyed from Bilquis Jahan Begum to me and my brother in February 1996," he had conveyed this to ED in February last year. Since then, he has been the owner and occupant till date. The conveyance deed and share certificate reflect the same. Also, Dhoot denied being a part and claimed that flat was owned by the Kochhar family from the beginning and he never had any ownership or other interest in it.
Present Scenario
The CBI’s investigation into a criminal conspiracy, cheating and other charges against the accused is ongoing. Earlier in this month, it was reported, that ED will file its first charge sheet in the case against Kochhar's.
Pacific Capital Service Pvt Ltd, Deepak Kochhar’s Company, spouse of Chanda Kochhar, former ICICI Bank CEO, filed a petition seeking the release of assets seized by the Enforcement Directorate (ED) at Delhi High Court.
The contention raised by the petitioner was, ED has failed to file a charge sheet-within limitation period i.e. 365 days and Issue has been raised by Counsel for the petitioner, “Whether ED can continue to have a seized property despite having failed to file a prosecution complaint (charge sheet) within 365 days. In response to which Advocate Amit Mahajan appearing on behalf of ED defended saying that similar petition is pending in Bombay HC.
Since necessary jurisdiction was Delhi High Court, because charge sheet will be filed by ED in a Delhi Court, and petition pending in Bombay High Court has already become infructuous. After brief arguments, the matter has been adjourned to the next week on the request of the petitioner.
