Chanda Kochhar and husband - arrested in Videocon loan fraud case - to be freed
ICICI Bank Videocon Loan Fraud Case: The couple had earlier sought interim release account of the wedding of their only son, which is scheduled for January 15, and cancellation of remand.
The Bombay High Court on Monday granted bail to Chanda Kochhar, the former ICICI Bank managing director and chief executive officer, and her husband Deepak Kochhar from judicial custody after their arrest by the CBI in the ICICI Bank-Videocon loan fraud case, news agency PTI reported.
The arrest was 'not in conformity with provisions of law', the court observed.
The couple will be released on a cash bail of ₹1 lakh each with one or more sureties of the same amount. According to PTI, a division bench of justices Revati Mohite Dere and PK Chavan also directed them to surrender passports.
READ | Decoding ICICI-Videocon case and Chanda Kochhar's alleged role
"We have held that the petitioners' (Kochhars) arrest was not in accordance with provisions of law and this warrants their release," the court said.
Chanda and Deepak Kochhar were arrested last month by the CBI in a loan fraud case involving Videocon Group promoter Venugopal Dhoot.
READ | CBI arrests ex-ICICI CEO Chanda Kochhar, husband in Videocon loan fraud case
The central agency has alleged the private sector bank sanctioned credit of ₹3,250 crore in violation of prescribed norms.
The Kocchars had challenged their arrest as 'illegal', arguing no sanction had been obtained, as needed under provisions of the Prevention of Corruption Act.
READ | Chanda Kochhar, husband move HC, call their arrest by CBI 'illegal'
Chanda Kochhar's lawyers also said she had been arrested after a 'perfunctory interrogation' and that a female officer was not present at the time of her arrest, as is mandated by law.
Deepak Kochhar's lawyers had argued the couple had fully complied with notices served when they appeared for CBI questioning and, therefore, should not have been arrested.
The CBI denied violation of statutory mandate in arresting the Kochhars.
READ | CBI arrests Videocon chief Venugopal Dhoot in loan fraud case
The agency admitted the couple appeared as summoned but claimed that evasive replies to questions asked could not be seen as 'cooperation'.
The agency also refuted allegations no woman personnel were present when Chanda Kochhar was arrested, noting that in white collar crimes, accused need not be touched. She was orally informed of her arrest and a woman constable searched her, the said.
The couple had separately also sought temporary bail to attend their son's wedding, which is scheduled for January 15; the first function, they had told the court, was held on January 7. However, the court had made it clear last week that it would not consider this petition.
According to the CBI, after Chanda Kochhar took over as MD and CEO the bank sanctioned rupee term loans (RTL) worth ₹1,875 crore to six companies of the Videocon Group between June 2009 and October 2011. One loan - worth ₹300 crore - was allegedly given to Videocon International Electronics Limited when Kochhar was heading the sanctioning committee.
The loan was disbursed September 7, 2009, and, the next day, Videocon Group - via its firm, Supreme Energy Private Limited, transferred ₹64 crore to NuPower Renewables Limited.
That firm was managed by Deepak Kochhar.
The CBI has further claimed that on April 26, 2012, the existing outstanding of the six RTL accounts were adjusted in another RTL of ₹1,730 crore sanctioned to Videocon Industries Limited for 'refinance of domestic debt'. The account was declared as NPA - non-performing asset - with effect from June 2017, with the outstanding at ₹1,033 crore.
With input from agencies