ICICI Bank loan controversy: Chanda Kochhar claims was unaware of Videocon's business dealings with husband

ICICI Bank Managing Director and Chief Executive Chanda Kochhar has told the Securities and Exchange Board of India (SEBI) that she was unaware of the business dealings between her husband, Deepak Kochhar, the promoter of NuPower Renewables, and Videocon group promoter Venugopal Dhoot, according to a media report.

Responding to a SEBI show-cause notice, Chanda Kochhar, who is facing a probe for allegedly favouring family members in lieu of providing loans to a corporate house, denied the charges levelled against her by the markets watchdog, Business Standard reported .

“The interest of the Videocon group directly or indirectly in the company owned/managed by Deepak Kochhar was never brought to the notice of MD and CEO, since both had their professional life and were bound by respective confidentiality clauses,” Kochhar reportedly told the SEBI, according to the newspaper.

Last week, ICICI Bank denied charges of violation of disclosure norms with respect to the Videocon loan issue.

In June, a preliminary examination by the regulator favoured adjudication proceedings against ICICI Bank and its CEO for alleged violation of listing disclosure norms regarding ‘conflict of interest’ in business dealings of her husband with the Videocon group.

In a reply to SEBI’s show-cause notice issued in May with respect to alleged violation of disclosure norms, ICICI Bank said that it was not aware of the alleged conflict of interest situation and hence couldn’t make any disclosures.

Besides the SEBI probe, ICICI Bank’s board has constituted an “independent enquiry”. Kochhar is on leave till the conclusion of this enquiry.

The Central Bureau of Investigation (CBI) has also initiated a preliminary investigation into the Rs 3,250 crore ICICI loan extended to Videocon in 2012, and the possible role of Kochhar’s husband.

With inputs from agencies