Chanda Kochhar Convicted in Major ICICI Bank Loan Bribery Case

In a landmark ruling, the Appellate Tribunal governing the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) has concluded that Chanda Kochhar, the former Chief Executive Officer of ICICI Bank, engaged in corrupt practices by accepting a bribe of ₹64 crore in exchange for approving a ₹300 crore loan to the Videocon Group. This decision, dated July 3, 2025, significantly impacts ongoing investigations surrounding large-scale corporate malfeasance in India.

The tribunal's findings revealed a direct connection between the loan disbursement and economic benefits received by Kochhar’s husband, Deepak Kochhar, through his company, NuPower Renewables Private Limited. The case traces back to 2009 when ICICI Bank sanctioned multiple financial transactions with Videocon Group under Kochhar's leadership.

The tribunal's recent verdict overturned a previous administrative decision issued in November 2020, which had allowed the Kochhars to retain assets worth ₹78 crore. The tribunal deemed that earlier ruling as flawed and based on irrelevant factors, asserting that it had overlooked critical evidence in the case.

According to the tribunal, the ₹64 crore was transferred via Supreme Energy Private Limited into NuPower. This company, although initially associated with Videocon Group's founder Venugopal Dhoot, was ultimately determined to be under the full control of Deepak Kochhar. Notably, this transfer occurred a mere day after the ICICI Bank loan was granted, reinforcing allegations of corrupt conduct.

The tribunal also backed the Enforcement Directorate's characterisation of the ₹64 crore as proceeds of criminal activity under the Prevention of Money Laundering Act (PMLA). This ruling coincides with earlier actions taken by the Enforcement Directorate to provisionally attach the Kochhars’ properties, further complicating the legal landscape for the former banking executive and her spouse.

The story surrounding this case traces back to the years leading up to 2016, when whistleblowers first raised concerns about potential conflicts of interest in the loan dealings between ICICI Bank and Videocon Group. This ultimately led the Central Bureau of Investigation (CBI) to initiate a preliminary inquiry in 2018, resulting in a formal complaint filed in January 2019 naming Kochhar, her husband, and Dhoot as active participants in what the investigation describes as a criminal conspiracy, cheating, and the misuse of position.

Chanda Kochhar resigned from her position as CEO in October 2018 amid increasing scrutiny from regulatory authorities. Both she and her husband were arrested in December 2022 alongside Dhoot. Although they have secured bail, the legal proceedings are still ongoing, with the Supreme Court of India overseeing the case.

This ruling by the SAFEMA tribunal represents a pivotal moment in the ongoing legal proceedings, signalling a serious response to corporate fraud while emphasising the need for greater accountability within India’s banking sector. It also highlights the significant gaps that existed in ICICI Bank's internal governance and oversight policies during Kochhar's time leading the institution. This case serves as a crucial reminder of the regulatory frameworks designed to safeguard corporate integrity and protect public interests.