Chanda Kochhar was once a celebrated leader in India’s banking world. As the former CEO of ICICI Bank, she was known for guiding the bank through the 2008 financial crisis and expanding its retail banking business. Many saw her as an inspiration for women in corporate leadership.
But her legacy took a dark turn when allegations of conflict of interest, loan fraud, and corruption surfaced. Investigations revealed she may have misused her power for personal gain, leading to a major scandal that shook India’s financial sector. The case raised big questions about ethics and accountability in top corporate jobs.
How did corruption allegations tarnish Chanda Kochhar’s legacy? Let’s break it down.
The Chanda Kochhar Story: Architect of Modern Indian Finance?
Her journey with ICICI Bank began in 1984 as a management trainee. Over the next two decades, she rose steadily through the ranks, gaining respect for her sharp strategic thinking and leadership during crucial phases of the bank’s growth.
Kochhar played a pivotal role in shaping ICICI’s retail banking strategy during the early 2000s, helping it transition from a development financial institution to a full-fledged commercial bank. Her leadership during the 2008 global financial crisis won her wide praise, as ICICI Bank stayed resilient while many global institutions faltered.
By 2009, she was appointed Managing Director and CEO of ICICI Bank, becoming one of the first women to lead a major Indian bank. Kochhar was frequently listed among the world’s most powerful women by Forbes, Fortune, and Time, and was seen as a role model for millions of aspiring women professionals in India.
Shevaughn Pimenta
The Fall Begins: How did Chanda Kochhar’s success story turn into a scandal?
Chanda Kochhar’s journey to the top of India’s banking world was incredibly fast and impressive. But her downfall was just as shocking. In 2016, people started whispering about possible wrongdoing. By 2018, these rumors turned serious when someone officially complained. Chanda Kochhar resigned as CEO due to growing criticism in October 2018. The accusation?
Kochhar had unfairly helped the Videocon Group by approving an INR 300 crore loan when she shouldn’t have. This loan was part of a bigger deal with multiple lenders, but questions were raised about her special treatment of Videocon.
In a major setback for former ICICI Bank CEO Chanda Kochhar and her husband Deepak Kochhar, an appellate tribunal has upheld a 2020 Enforcement Directorate (ED) order that accused the couple of involvement in a money laundering case linked to a high-profile loan granted to the Videocon Group.
Timeline of Arrests & Legal Proceedings
Deepak Kochhar was first arrested by the Enforcement Directorate (ED) in September 2020 in connection with the Videocon loan case and was later granted bail. In December 2022, the Central Bureau of Investigation (CBI) arrested both Chanda and Deepak Kochhar, intensifying the legal battle.
However, the Bombay High Court granted them interim bail in January 2023, and in a significant ruling in February 2024, declared their arrest unlawful and termed it an abuse of power by the investigative agencies.
In its July 3 ruling, the Appellate Tribunal under the SAFEMA Act (Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976) observed a prima facie case of money laundering. The case revolves around an INR 300 crore loan sanctioned by ICICI Bank to Videocon International Electronics Ltd (VIEL) in August 2009, just three months after Chanda Kochhar became the bank’s MD & CEO.
Inside the Videocon Loan Controversy
The controversy dates back to August 2009, when ICICI Bank, under Chanda Kochhar’s leadership, sanctioned an INR 300 crore loan to Videocon International Electronics Ltd (VIEL). Just one day after the funds were disbursed, VIEL transferred INR 64 crore to NuPower Renewables, a company owned by Deepak Kochhar.
The ED alleged this transfer was a bribe and part of a kickback arrangement. The funds were reportedly used to acquire wind energy assets, while the flat in Churchgate, South Mumbai, was also allegedly bought using linked money trails.
The Loan That Sparked It All
The case centers around an INR 300 crore loan sanctioned by ICICI Bank to Videocon International Electronics Ltd (VIEL) in August 2009, just three months after Chanda Kochhar took over as the bank’s Managing Director and CEO.
Here’s where the timeline raises eyebrows:
- September 8, 2009: The loan is disbursed to VIEL.
- September 9, 2009: VIEL transfers INR 64 crore to NuPower Renewables Pvt Ltd (NRPL), a company owned by Deepak Kochhar.
The ED claims this swift transfer was not a coincidence, but a quid pro quo, a reward in return for the loan clearance.
A Turnaround from the 2020 Ruling
Back in November 2020, the Adjudicating Authority had refused to confirm the ED’s provisional attachment of the Churchgate flat, wind energy assets, and INR 10.5 lakh in cash. This prompted the ED to file an appeal.
Now, the tribunal has ruled in favour of the ED, ordering the permanent attachment of those assets, directly contradicting the earlier decision.
Tribunal Reverses 2020 Ruling, Slams Earlier Decision in Chanda Kochhar Case
This recent order by the appellate tribunal is significant as it overturns the November 2020 decision by the lower adjudicating authority, which had ordered the release of assets valued at INR 78 crore linked to the Kochhars.
The tribunal didn’t just reverse the decision; it heavily criticized the adjudicating authority for not applying the law properly and for failing to examine the evidence thoroughly. The appellate body emphasized that the INR 64 crore transferred from Videocon to NuPower Renewables was not a simple commercial deal, but a bribe disguised as an investment, forming a clear quid pro quo. In its order, the tribunal strongly criticized the Adjudicating Authority for overlooking crucial evidence and focusing on irrelevant aspects. It noted that the Authority had placed undue emphasis on NRPL’s shareholding pattern, while ignoring the more significant fact that Deepak Kochhar, as Managing Director, had complete operational control over the company.
This was further corroborated by Videocon’s V.N. Dhoot, who, in his statement under Section 50 of the PMLA, clearly stated that Deepak Kochhar was in charge of running the company’s affairs. The Appellate Tribunal, in its findings, rejected Chanda Kochhar’s explanation for participating in the committee meeting that approved the INR 300 crore loan to the Videocon Group, an entity with which she had a known association.
The tribunal held that Kochhar could not plausibly claim ignorance of the conflict of interest, and concluded that her involvement in the loan approval process was a clear breach of ICICI Bank’s internal policies and ethical guidelines. The assets in question, including the Churchgate flat, wind energy farms, and cash, were deemed proceeds of crime under the Prevention of Money Laundering Act (PMLA), reaffirming the ED’s original findings.
What Does This Mean for Kochhar and Corporate India?
The tribunal’s decision adds weight to the ED and CBI’s ongoing case against the Kochhars. While criminal proceedings are still underway, this ruling strengthens the money laundering narrative and could impact future bail hearings, asset recovery, and reputational damage.
The verdict also raises larger questions:
- Are Indian banks doing enough to prevent conflict of interest at the top?
- How much influence do corporate-political nexus and family interests still wield in high-value lending?
Conclusion
Chanda Kochhar’s dramatic fall from being a celebrated banking icon to facing serious corruption charges serves as a stark reminder that power without accountability can derail even the most illustrious careers. As the legal battle continues, her story has become a case study in corporate governance failures, highlighting the urgent need for stronger checks and ethical oversight at the highest levels of Indian banking.
Harshit Verma
FAQs
Who is Chanda Kochhar?
Chanda Kochhar is the former CEO of ICICI Bank, known for her role in expanding the bank’s retail operations and leading it through the 2008 financial crisis.
What charges have been filed against Chanda Kochhar?
Chanda Kochhar has been accused of corruption, conflict of interest, and money laundering in connection with the ICICI-Videocon loan case.