Corporate affairs ministry probing companies in ICICI Bank controversy: Report | business news | Hindustan Times
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Corporate affairs ministry probing companies in ICICI Bank controversy: Report

Last month, the board of ICICI Bank ordered an independent probe into allegations of ‘conflict of interest’ and ‘quid pro quo’ in MD and CEO Chanda Kochhar’s dealing with certain borrowers.

business Updated: Jun 07, 2018 12:51 IST
Deepak Kochhar, founder and CEO and manging director of NuPower Renewables Pvt. Ltd.
Deepak Kochhar, founder and CEO and manging director of NuPower Renewables Pvt. Ltd.(HT Photo)

The Ministry of Corporate Affairs is looking into the affairs of companies involved in the ICICI Bank controversy of alleged conflict of interest in bank chief Chanda Kochhar’s dealings with certain borrowers, a senior official said on Thursday.

The official also clarified that the ministry is not looking into the happenings at ICICI Bank as it is completely under the purview of the Reserve Bank of India (RBI).

“The ministry is looking at allegations with respect to fraudulent, preferential or under-valued transactions... those companies which have come into controversy in the light of ICICI Bank issue,” the official said.

However, he did not divulge specific details about the companies involved.

Last month, the board of ICICI Bank ordered an independent probe into allegations of ‘conflict of interest’ and ‘quid pro quo’ in MD and CEO Chanda Kochhar’s dealing with certain borrowers.

There are allegations of involvement of Kochhar and her family members in a loan provided to Videocon group on a quid pro quo basis. It was alleged that Videocon Group pumped money into NuPower Renewables, a firm owned by Deepak Kochhar, husband of Chanda Kochhar.

The enquiry was ordered by the board on a complaint by an anonymous whistle-blower against Kochhar.

“...the enquiry to be headed by an independent and credible person (will) examine and enquire into an additional anonymous whistle-blower complaint...,” the bank had said in a regulatory filing.

Markets regulator SEBI had served a notice on Kochhar on dealings of the bank with Videocon Group and Nupower, last month.