ICICI Bank: Top Law Firm Cyril Amarchand Mangaldas Withdraws Report That Cleared Kochhar

One of India’s leading law firms, Cyril Amarchand Mangaldas, recently withdrew its investigative report of 2016 that had given Chanda Kochhar a clean chit, according to a person close to the development speaking on the condition of anonymity.

Cyril Amarchand Mangaldas refused to comment on the withdrawal of its report. “As a rule we do not comment on client matters,” the firm said in response to a BloombergQuint query.

The Kochhar Saga So Far...

Earlier in October, Kochhar had stepped down as the head of the bank after nine years at its helm. Her resignation came even before the probe into alleged impropriety in granting of loans by the bank to the Videocon group was completed. That probe led by retired Justice Srikrishna will continue, said the bank while adding that “certain benefits” would be dependent on the outcome of the investigations.

The allegations had first come to light in 2016 and resurfaced in March this year when the Indian Express detailed a series of transactions between the Videocon Group and NuPower Renewables between 2008-2013.

At first, the board of ICICI Bank rubbished the allegations and backed Chanda Kochhar. In a March 28 statement, the board of ICICI Bank said that it has full faith in her. The board termed allegations of a conflict of interest in Kochhar’s dealings with the Videocon Group as “malicious and unfounded rumours”. It went on to say that there is “no question or scope of any favoritism, nepotism or quid-pro-quo.”

But a series of external inquiries and further whistleblower information finally prompted the bank to set up an internal probe.

• On March 31, the CBI said it is conducting a preliminary enquiry into the matter. It named Deepak Kochhar (Chanda Kochhar’s husband), the Videocon Group and unknown others.
• On April 3, Deepak Kochhar’s NuPower Renewables got a tax notice as the Income Tax Department started to look at possibilities of evasion.
• On April 16, the bank disclosed that capital market regulator SEBI had sought clarifications based on news reports alleging conflict of interest. The bank has duly responded to this, the lender said.
• Reports suggested that the RBI, which had looked into the matter in 2016, was also relooking at the case.

On June 18, ICICI Bank announced that Chanda Kochhar will go on leave and a committee headed by restired Justice Srikrishna would look into allegations against her. The report of the committee is yet to be finalised.

Following Kocchar’s exit, Chief Operating Officer Bakshi was elevated as the new managing director and CEO for five years until Oct. 3, 2023.