The Bombay High Court has ordered the release of former ICICI Bank MD and CEO Chanda Kochhar and husband-businessman Deepak Kochhar, who were placed under judicial custody after CBI arrested them in connection with the Videocon loan fraud case. The bench held that the arrest was not in accordance with law. The release, moreover, is subject to furnishing of a provisional cash bail of Rs 1 lakh each.
A division bench of Justices Revati Mohite Dere and PK Chavan said that the arrests were made in violation of Section 14A of the Code of Criminal Procedure (CrPC) that states that a notice must be sent before the appearance of the concerned police officer.
The order comes after the Kochhars pointed out that the arrest by the CBI was illegal. Their son is also set to get married this month. However, the bench had mentioned that they are not considering the wedding but only the illegality of the arrest.
They said that no sanction was obtained before the CBI action as required under the provisions of the Prevention of Corruption Act (PCA). Chanda Kochhar’s lawyer, senior advocate Amit Desai submitted that her arrest was made after a “perfunctory interrogation”. Desai also argued that she was not aware of what was happening with her husband’s business.
The lawyer also argued that Chanda Kochhar was arrested by a male officer and the memo does not show the presence of a female officer, as is required per the law.
Her lawyer and Deepak Kochhar’s lawyer too argued that they cooperated with the investigation.
The arrest of the Kochhars as well as Videocon’s Venugopal Dhoot come in connection with allegations of loan fraud. The CBI, as per an FIR registered in 2019, alleged that Chanda Kochhar who was at the helm of ICICI Bank at that time, received kickbacks in way of investment in husband Deepak Kochhar’s Nupower Renewables by Dhoot for sanctioning a loan to Videocon in 2012. It is alleged that the bank sanctioned credit facilities to the tune of Rs 3,250 crore Videocon Group in violation of norms.