icici bank: Chanda Kochhar’s lawyer claims no wrongful loss to ICICI Bank

ICICI Financial institution, whereas granting sanction to prosecute its former managing director and chief government Chanda Kochhar in a corruption case, communicated to the CBI in July 2021 that “the loans underneath probe have been extinguished and no wrongful loss has been induced to the financial institution”, her lawyer advised a court docket right here on Saturday.

“…due course of was adopted whereas granting the loans” however “contemplating the allegations of bribery and corruption, we accord sanction”, lawyer Amit Desai mentioned, quoting the financial institution’s communication to the CBI.

He learn out the content material of the financial institution’s letter whereas contesting the company’s demand for the custody of the previous banker and her businessman husband who have been arrested by the company on Friday.

Kochhar, who’s going through a probe over alleged irregularities in sanctioning loans to the Videocon Group, has been booked underneath sure sections of the Prevention of Corruption Act, together with prices of dishonest and prison conspiracy underneath the Indian Penal Code. Beneath the anti-corruption Act, prosecution wants the approval of a reliable authority.

Desai argued that the CBI had erred on details within the case.

“…when the financial institution has particularly acknowledged that there was no wrongful loss to the financial institution in any of those transactions, then how can the CBI say it is a case of wrongful loss,” Desai requested. The financial institution has clearly talked about in regards to the errors of details within the CBI FIR, he mentioned. “Opposite to what the CBI claims, the loans have been sanctioned following due course of,” he mentioned, including that no Reserve Financial institution of India pointers had subsequently been violated.”

Desai additionally argued that the letter sanctioning prosecution of Kochhar was signed by the authorized head of ICICI Financial institution who couldn’t be deemed because the “competent authority” to grant sanction to prosecute a managing director and CEO. “The sanction hasn’t been granted by the competent authority,” he claimed.
Individuals within the know advised ET that the sanction to prosecute Kochhar was granted by ICICI Financial institution’s board, however was communicated to the CBI by its authorized staff. “Who communicates would not matter … that could possibly be an organization’s inner coverage, however the reality is that the financial institution has granted sanction to prosecute,” mentioned certainly one of them.

On the purpose of no wrongful loss induced to the financial institution, the individual mentioned the CBI was investigating the precise nature of loss and it will be detailed out in its cost sheet.