Kochhars’ arrests not as per law, says HC while granting bail

Chanda Kochhar, former MD and CEO of ICICI Bank, outside a special CBI court. File Pics

In a major setback to the Central Bureau of Investigation (CBI), the Bombay High Court has granted interim relief to former managing director and chief executive officer of ICICI Bank Chanda Kochhar and her husband Deepak. The court held that their arrest was not done in accordance with provisions of the law and ordered their release. The court mentioned that the arrest of Kochhars was in violation of Section 41A of the Code of Criminal Procedure which mandates that a warrant be served asking the person to appear before the police.

The court also referred to the arrest memo produced by the CBI which mentions that the grounds of arrest were that the accused was named in the FIR and had not been cooperating with cops by not disclosing true and full facts of the case. The HC bench stated that the reasons mentioned in the memo do not satisfy the mandate laid down by the Supreme Court under Sections 41 and 41 A of the CrPC.

Section 41 of the CrPC deals with circumstances under which the cops can arrest someone without an order from the magistrate or a warrant. "The grounds for arresting the petitioners as stated in the arrest memos is unacceptable and is contrary to the reason(s)/ ground(s) on which a person can be arrested as mandated by Section 41," the bench said.

Chanda Kochhar's husband Deepak Kochhar too was arrested in connection with the loan fraud case

It added, "It [arrest memo] does not disclose as to whether the arrest was necessary for one or more purpose(s) as envisaged in the said provision. The same is also in contravention of the directions given by the Apex Court." "Accordingly, we hold that the petitioners' arrest is not in accordance with law," the court held and granted release of the Kochhar couple on cash bail of Rs 1,00,000 each.

Also read: Videocon loan case: Kochhars and Dhoot sent to 14-day judicial custody

The CBI arrested the Kochhars on December 23 in connection with the ICICI Bank loan fraud for causing wrongful loss to the bank to the tune of Rs 1,730 crore. Thereafter, CBI officers arrested Videocon Group Chairman Venugopal Dhoot, who is said to be a beneficiary, on December 26 in the case. Dhoot, who is currently in judicial custody, has also challenged his arrest.

CBI's case

The CBI started a preliminary enquiry against the Kochhars and Dhoot in December 2017 in connection with the case. In January 2019, the agency filed an FIR in the case against the Kochhars, Dhoot, Videocon International, Videocon Industries, Nupower Renewables Pvt Ltd, Supreme Energy Pvt Ltd, unknown private people and unknown public servants.

The FIR stated that between 2009 and 2011, when Kochhar was at the helm of the bank, a total of 6 high value loans were given to various companies of the Videocon Group. The agency cited that on September 7, 2009, the bank disbursed a R300-crore loan to Videocon International and that Kochhar was a member of the loan sanctioning committee. The CBI said this loan was in violation of bank's credit policies, RBI guidelines and the Banking Regulation Act.

CBI officers also mentioned that the same day, Videocon International transferred R64 crore to Nupower Renewables Pvt Ltd, a firm owned by Deepak Kochhar. The agency claims this amount was transferred as a kickback.

23
Day in December when Kochhars were arrested