SC issues notice to Chanda Kochhar, husband on CBI’s appeal in loan fraud case

The Supreme Court on Friday sought replies from ICICI Bank’s former managing director Chanda Kochhar and her husband Deepak Kochhar on a petition filed by the Central Bureau of Investigation (CBI) against the invalidation of their arrest by the agency in connection with the alleged ₹3,250-crore Videocon loan fraud case.

A bench of justices Sanjiv Khanna and PV Sanjay Kumar issued notices to the couple, admitting the CBI’s appeal against the February 6 judgment of the Bombay high court.

Additional solicitor general SV Raju, appearing for the CBI, assailed the high court judgment, briefly arguing that the arrest of the two complied with all legal and procedural requirements.

Issuing notice in the matter, the court said that the CBI’s petition against the couple will be taken up with another plea filed by the agency against the bail granted to Videocon Group promoter Venugopal Dhoot in the same case earlier this year.

In its February 6 judgment, the high court ruled that the CBI acted without due consideration and abused its power in the arrest of Chanda Kochhar and her husband.

“The investigating agency (CBI) has failed to demonstrate any circumstances or material evidence justifying the decision to arrest,” said the high court, adding that routine arrests without proper reasoning or adherence to the law amount to abuse of power.

The high bench of justices Anuja Prabhudessai and N R Borkar said that the CBI was unable to demonstrate the existence of circumstances or supportive material for the arrest. “In the absence of this, the provision is reduced to a dead letter and the arrest is rendered illegal.”

The Kochhars were taken into custody in December 2022 in connection with the alleged ₹3,250-crore loan fraud involving Videocon. The CBI’s 2019 FIR accused ICICI Bank, under Chanda Kochhar’s leadership, of sanctioning ₹3,250 crore in credit to the Videocon Group, led by Venugopal Dhoot, in violation of banking norms.

Following their arrest, the couple approached the high court, arguing that their arrest was illegal. In January 2023, the high court granted them interim bail, instructing them to cooperate with the investigation and appear before the CBI when required.

The CBI defended its actions, claiming that the Kochhars had not cooperated with the investigation and that their arrest was necessary to uncover the extent of the alleged conspiracy and identify other potential co-conspirators.