ICICI Bank loan controversy: Justice BN Srikrishna panel to probe all property dealings by Kochhar family

The Justice BN Srikrishna panel, which is probing certain allegations against Chanda Kochhar, will also go through all property dealings by the Kochhar family since she took over as CEO of ICICI Bank, a media report said.

ICICI Bank board has asked BN Srikrishna to examine whether properties and assets acquired by the Kochhar family were purchased at concessional prices, The Economic Times reported .

“That is correct. I am heading an investigation into several allegations made by a whistleblower against her,” Justice Srikrishna was quoted as saying by the newspaper.

The ICICI Bank MD and CEO currently is on an absence of leave from office, pending the probe against her on the allegations of favouring family members in lieu of providing loans to a corporate house.

Kochhar is facing allegations of impropriety in ICICI Bank for allegedly extending loans to some companies and enjoying reciprocal benefits.

It has been alleged that her family members, including her husband Deepak, got financial favours from the bank’s borrowers against the loans the private lender sanctioned.

Market regulator Securities Exchange Board of India (SEBI) has already served a notice to Kochhar on dealings of the bank with Videocon Group and Nupower – a firm controlled by her husband.

In June, former Supreme Court judge BN Srikrishna had accepted the lender’s request to preside over an  independent investigation .

On 30 May, ICICI Bank, in a regulatory filing to the BSE,  said  that the scope of its enquiry would be comprehensive and include all relevant matters arising out of and in the course of examination of the facts and wherever warranted, “use of forensic/email reviews and recordal of statement of relevant personnel, etc.” would be done.

The enquiry would also cover all connected matters in the course of the investigation to bring it to a final close.

“In keeping with the Whistle Blower Policy of the bank, Board has mandated its audit committee to take all further actions in the matter to operationalise this decision – including in particular, appointment if an independent and credible person as Head of the Enquiry, determining the terms of reference of the Enquiry, the period which will be covered by the Enquiry,” the bank said.

With inputs from agencies