The Bombay High Court has granted relief to former ICICI Bank Ltd. Chief Executive Officer and Managing Director Chanda Kochhar and her husband by accepting the petition challenging the Central Bureau of Investigation's arrest, related to alleged irregularities in loans to Videocon Group firms.
The bench, comprising Justices Anuja Prabhudessai and NR Borkar, upheld the earlier interim bail granted on Jan. 9, 2023, stating that her arrest was illegal.
Kochhar argued that the arrest was against the constitutional mandate and statutory provisions.
Her counsel emphasised her cooperation with the CBI during the preliminary enquiry and subsequent investigations by the Enforcement Directorate under the Prevention of Money Laundering Act.
Kochhar claimed no knowledge of her husband's transactions and highlighted procedural violations during her arrest, such as the absence of a lady officer as mandated by law, lack of previous approval under the Prevention of Corruption Act, and non-compliance with court judgments on this matter.
The Story So Far
On Dec. 8, 2017, the CBI registered a preliminary enquiry against Kochhar and others. Subsequently, her husband, Deepak Kochhar, received a summons on Sept. 6, 2018, and attended the CBI office for interrogation on multiple occasions.
On Jan. 22, 2019, the CBI registered an FIR against Chanda and Deepak Kochhar under various sections, alleging offenses during 2009–2012.
Simultaneously, the ED registered a case under the PMLA on Jan. 31, 2019, claiming proceeds of crime amounting to Rs 1,794 crore.
Deepak Kochhar was arrested by the ED on Sept. 7, 2020, while Chanda Kochhar wasn't arrested during the investigation.
Legal proceedings ensued, including bail granted to Chanda Kochhar by the Sessions Court on Feb. 12, 2021, and later confirmed by the Supreme Court.
The petitioners attended CBI hearings even after the arrest of Deepak Kochhar. The most recent development occurred on Dec. 23, 2022, when both petitioners were arrested after appearing before the CBI.
Court Observations
The court scrutinised the arrest memos of Deepak Kochhar and highlighted that the grounds provided for the arrest were identical and insufficient.
The reason for arrest stated in the memos was "not cooperating and disclosing true and full facts of the case" and was deemed inadequate and contrary to legal mandates.
The court highlighted that arrest can only be authorised when there is a "reason to believe" and "satisfaction qua an arrest" that the person committed an offence.
The court criticised the casual and mechanical nature of the arrest reasons, noting that the petitioners cooperated with authorities over several years. The arrest, made after a prolonged period without summons or communication, was considered arbitrary and without proper application of the mind.
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