Chanda Kochhar, Husband's Arrest In Loan Fraud Case 'Abuse Of Power' By CBI: Bombay High Court

The Bombay High Court has criticised the arrest of ICICI Bank's former Managing Director and CEO, Chanda Kochhar, and her husband Deepak Kochhar by the CBI in a loan fraud case.

A bench of Justices Anuja Prabhudessai and NR Borkar said the arrest lacked proper consideration of facts and adherence to the law, terming it an "abuse of power", according to a judgement dated Feb. 6 that was uploaded on Monday on the court website.

The FIR against the couple outlined allegations that the petitioners were involved in a conspiracy related to loan sanctions for Videocon Group of Companies by ICICI Bank Ltd. The FIR also implicated senior officials of ICICI Bank's sanctioning committee, highlighting the need for their investigation.

Surprisingly, the involvement of these officials was known to the investigating agency from the FIR's registration, yet no arrests were made for over three years, the court observed.

The bench said that the arrest of the couple on Dec. 23, 2022 lacked new evidence and was based on information already known to the investigating officer during the issuance of notice.

In December 2017, the Central Bureau of Investigation initiated a preliminary inquiry against Chanda Kochhar and others. Deepak Kochhar received a summons in September 2018 and was interrogated by the agency multiple times.

On Jan. 22, 2019, the CBI registered an FIR against both Chanda Kochhar and Deepak Kochhar, accusing them of offenses during 2009–2012. Concurrently, the Enforcement Directorate registered a case under the PMLA on Jan. 31, 2019, citing proceeds of crime amounting to Rs 1,794 crore.

Deepak Kochhar was arrested by the ED on Sept. 7, 2020, while Chanda Kochhar avoided arrest during the investigation. Legal proceedings ensued, leading to Chanda Kochhar being granted bail by a sessions court on Feb. 12, 2021, a decision later confirmed by the Supreme Court.

The petitioners continued to attend CBI hearings even after Deepak Kochhar's arrest. The latest development occurred on Dec. 23, 2022, when both petitioners were arrested after appearing before the CBI.

Following an appeal against the arrest before the Bombay High Court, the couple was granted interim bail, which was confirmed in Feb of the current year.