Sebi serves notice to ICICI Bank’s Chanda Kochhar in Videocon loan case

Videocon Group chairman Venugopal Dhoot and NuPower Renewables run by Chanda Kochhar's husband Deepak Kochhar are involved in the Videocon loan case

Jayshree P. Upadhyay
Updated25 May 2018, 11:17 PM IST
ICICI Bank CEO Chanda Kochhar. Photo: Abhijit Bhatlekar/Mint
ICICI Bank CEO Chanda Kochhar. Photo: Abhijit Bhatlekar/Mint

Mumbai: Markets regulator Securities and Exchange Board of India (Sebi) has started proceedings against ICICI Bank Ltd for non-disclosure of information in the matter of alleged conflict of interest in the grant of loans to the Videocon group. 

The company told NSE on Friday that Sebi has sent the bank and Chanda Kochhar, its MD and CEO, a notice alleging violation of Listing Obligation and Disclosure Requirements (LODR) and for not making adequate disclosures.

Mint reported on 12 April that Sebi was probing alleged corporate governance and disclosure lapses at the bank.

“The notice has been issued based on information furnished by the bank/its MD and CEO to diverse queries made by Sebi concerning dealings between the bank and Videocon Group and certain dealings allegedly between Videocon Group and Nupower, an entity in which Deepak Kochhar, spouse of MD and CEO (Chanda Kochhar), has economic interests,” said ICICI Bank in a disclosure to NSE.

Sebi had sent a notice to the bank on Thursday seeking its response and the bank said that it will submit its response soon.

The case pertains to alleged conflict of interest in a Rs3,250 crore loan ICICI Bank gave Videocon group. The amount was part of a Rs40,000 crore loan by a consortium of 20 banks in 2012.

Videocon group promoter Venugopal Dhoot allegedly gave Rs64 crore in 2010 through a fully-owned entity to NuPower Renewables, which he set up with Deepak Kochhar and two of his kin. It is alleged that he transferred proprietorship of the firm to a trust owned by Deepak Kochhar for Rs9 lakh six months after he received the loan from ICICI Bank.

 However, M.K. Sharma, chairman of ICICI Bank, said on 29 March that there is “no conflict of interest as Videocon group is not an investor in NuPower Renewables”.

J.N. Gupta, co-founder and managing director of Stakeholders Empowerment Services, said the market regulator can seek information if the disclosure is not adequate.

“The moot question is whether the alleged disclosure lapses happened in 2012 when the provisions of LODR 2015 were not notified or do they pertain to some lapses today,” said Gupta.

One of the allegations against the bank is that it restructured Videocon loans through a firm that appears to be a related party. In 2012, Related Party Transactions were not defined either by the Companies Act or Sebi norms, but there was a concept of person of interest (to the company management). 

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:25 May 2018, 11:17 PM IST
HomeCompaniesNewsSebi serves notice to ICICI Bank’s Chanda Kochhar in Videocon loan case

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Bharat Electronics

    03:59 PM | 22 JUL 2024
    6.3 (2.06%)

    Zee Entertainment Enterprises

    03:59 PM | 22 JUL 2024
    -2.95 (-2.14%)

    Tata Steel

    03:57 PM | 22 JUL 2024
    2.6 (1.65%)


    03:59 PM | 22 JUL 2024
    -51.5 (-9.24%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rashtriya Chemicals & Fertil

    03:53 PM | 22 JUL 2024
    21.1 (9.86%)

    NBCC India

    03:52 PM | 22 JUL 2024
    13.05 (7.6%)

    Indian Hotels Company

    03:54 PM | 22 JUL 2024
    42.95 (7.44%)

    Chalet Hotels

    03:29 PM | 22 JUL 2024
    55.9 (7.32%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K

      Fuel Price

      • Petrol
      • Diesel
      New Delhi