Page 36 - Tehelka Issue 8&9

column banking

• Taking charge It was not an easy task to
Can Chanda Kochhar come fit into the big shoes of Kamath but Chanda
Kochhar did that quite effortlessly
out of conflict of interest? managing trustee.

Support for Chanda Kochhar
Venugopal Dhoot, Chairman of Vide-
ocon Industries, who is in the eyes
News & Even as ICICI Bank chairman gives her a clean chit, only a thorough of storm has come out in support
probe by the central agency would uncover the mystery behind the
views alleged nexus between Kochhar’s husband and Videocon chairman of Chanda Kochhar saying that “the
ICICI Bank has already clarified that
Bharat hiteshi I have not been given any favour as I
have not received a loan from ICICI
hough ICICI Bank chairman Group. Her association with ICICI dates alone — Videocon Industries took
Hiteshi is an MK Sharma has given a back to 1984, when she joined as a man- loans from a consortium led by the
independent journalist- clean chit to the Managing agement trainee at Industrial Credit and State Bank of India. This was done
turned-author and a Director and Chief Execu- Investment Corporation of India Limited after a high degree of credit appraisal
political commentator. tive Officer of bank, Chanda (ICICI), which later became ICICI Bank through range of issues but the ed to Venugopal Dhoot’s Videocon by the bankers as they found Vide-
The views expressed T Kochhar, in allegations of Limited. One of her biggest achieve- problem of bad loans stuck and group and funding of the NuPower ocon to be a very lucrative invest-
are his own impropriety against her in Videocon ments was to oversee the establishment these have jumped from 9416 crore Renewables, a company founded by ment because of its oil assets. When
loan case, would she be able to come out of the bank’s retail franchise. In 2000, in June 2009 to 46,039 crore in Deepak Kochhar and others. the matter came to the ICICI Bank
of it? What compounds her problems is Kochhar’s predecessor K.V. Kamath December 2017. Proportionately, the The 3,250 crore was part of a Board, Chanda Kochhar was not the
that the CBI and SEBI are going ahead to asked her to build the bank’s retail busi- gross NPA ratio went up from 4.63 loan of about 40,000 crore that Chairperson but one of the members
probe the alleged nexus between hus- ness from scratch. Between then and per cent in June 2009 quarter to 7.82 the Videocon Group had received of the committee.
band of Chanda Kochhar and Videocon her taking over as CEO in May 2009, the per cent by December 2017 quarter. from a consortium of 20 banks led Till the time the matter comes to
chairman Venugopal Dhoot. share of retail loans in the book grew to With the ICICI Bank embroiled in a by the State Bank of India. While the the Board, Chanda Kochhar did not
Not only that the CBI has arrested nearly over 54 per cent. Chanda Kocchar, controversy over alleged conflict of current outstanding of the group know which proposal was coming
Chanda Kochhar’s brother-in-law Rajiv who won the Padma Bhushan award interest involving its CEO Chanda against ICICI Bank loan stands at so she could not have influenced
Kochhar and stopped him from board- in 2011, is also known for leading other Kochhar, market regulator SEBI has 2,849 crore, the specific account it. I have not invested 64 crore in
ing a flight from Mumbai to Singapore, initiatives such as adopting 600 villages begun looking into the matter for any was declared non-performing asset NuPower nor issued any money to
he was picked up by Central Bureau of and providing them a digital ecosystem. possible disclosure and corporate last year. NuPower Renewables was Deepak Kochhar. Then where is the
Investigation sleuths and taken to an She is also known for speaking about governance-related lapses. The CBI incorporated in December 2008 by question of any quid pro quo? The
undisclosed destination for questioning. gender issues and talked about how ICICI has by now examined some officials Deepak Kochhar, Dhoot and others ICICI Bank board has also come out in
According to sources, a lookout cir- has fostered a culture of gender equality. of ICICI Bank in connection with a and Dhoot later resigned as direc- strong support of Chanda Kochhar. In
cular had been issued against Rajiv and A graduate of the Jamnalal Bajaj Institute preliminary enquiry involving the tor in January 2009 and sold all his a statement, the ICICI Bank said that
other members of the Kochhar family of Management Studies, then Chanda husband of Chanda Kochhar, and shares. It allegedly received 64 crore “ICICI Bank was not the lead bank
so that none of them could leave the Advani met her husband Deepak Koch- the Videocon Group, pertaining to through Supreme Energy, which was for this consortium and the bank
country. The CBI has filed for a prelimi- har there. a loan 3,250 crore extended to the later allegedly taken over by a trust, only sanctioned its share of facilities
nary enquiry against Chanda Kochhar, It was not an easy task to fit into the latter. in which Deepak Kochhar was the aggregating approximately 3, 250
her husband Deepak and brother-in- big shoes of Kamath but she did that Deepak Kochhar and Videocon crore which was less than 10 per cent
law Rajiv and others as part of a probe quite effortlessly. The ICICI Bank is the have been mentioned in the prelimi- of the total consortium facility in
into the 3,250-crore loan issued to the second largest new generation bank nary enquiry by the CBI. The agency April 2012.”
Videocon group in 2012. The preliminary in the country and a thorough probe is may convert the preliminary enquiry There are reports Stating that there was no conflict
enquiry comes after reports alleged that called for into the alleged “quid pro quo” into a regular FIR after determining of interest involved, the bank said
financial dealings of Deepak’s compa- by independent agencies to get to the that there is prima facie a case per- alleging that none of the NuPower Renewables
nies coincided with the big loans made whole truth. The allegation that Koch- taining to the allegations. Similarly, if Videocon’s Dhoot investors were its borrowers. It
by ICICI Bank to Videocon. Rajiv, who har’s husband, Deepak Kochhar gained there is not enough evidence than the said Chanda Kochhar had made all
runs a firm, Avista Advisory, in Singapore undue favours from industrialist Venu- preliminary enquiry can be closed by had through necessary disclosures to the board in
is reported to have business dealings gopal Dhoot after the bank approved a the agency. another entity advance as per the regulatory guide-
with several companies that had bor- loan of over 3,000 crore six years ago, There are reports alleging that lines. In view of support pouring in
rowed money from ICICI Bank but are needs to be investigated. The Videocon Videocon’s Dhoot had through Supreme Energy for Chanda Kochhar it seems that
now facing bankruptcy. account is now a Non Performing Asset another entity Supreme Energy made made investments only a thorough probe by the Central
Surprisingly, the bank board has (NPA) and it arouses huge suspicion. investments in Deepak Kochhar’s agency would uncover the mystery of
expressed full faith in its MD and CEO, firm. According to the CBI, the pre- in Deepak conflict of interest.
Chanda Kochhar apparently because Crux of the issue liminary enquiry has begun into an Kochhar’s firm
of her long association with the ICICI Ironically Chanda Kochhar waded alleged link between the loan extend- letters@tehelka.com

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36-37 Column Hiteshi.indd 2-3 02/05/18 5:38 PM