As a multi-agency probe continues into alleged lapses involving ICICI Bank’s chief Chanda Kochhar and her family members, the matter has also come under the scanner of the US Securities and Exchange Commission (SEC). In addition, Indian regulators and investigative agencies are mulling on seeking help from their overseas counterparts, including in Mauritius, as part of their own probes, officials said.
When asked about its probe into matters related to ICICI Bank and Kochhar, a spokesperson for the SEC office of public affairs declined to comment. The queries sent to ICICI Bank also remained unanswered. The lender has already instituted an independent inquiry into allegations of ‘conflict of interest’ and ‘quid pro quo’ in Kochhar’s dealing with certain borrowers.
Earlier in March, when reports first surfaced in this regard, the bank had said that its board has “full confidence and reposes full faith” in Kochhar.
Sources said the US markets regulator is actively looking into the matter as ICICI Bank is listed in the US, and it may seek further details from its Indian counterpart, Sebi, which has already issued show-cause notices to ICICI Bank and Kochhar as part of its probe.
Officials said Sebi has been approached for some clarifications that would be provided to the bank and its CEO, among others, to whom notices have been served. Those looking into the matter also include the RBI and the corporate affairs ministry, while the CBI had earlier registered a preliminary inquiry against Kochhar’s husband, among others, and extensively questioned her brother-in-law in April.
The cases under scanner includes the bank’s £325 million loan to Videocon Group in 2012 and the involvement of Kochhar family members in restructuring of the loan.
Last week, interim finance minister Piyush Goyal said the law will take its own course in the alleged case of nepotism at ICICI Bank, even though it is a good bank with “very robust processes” and there was no cause for concern for any of the stakeholders of ICICI Bank per se.
There are allegations of impropriety in ICICI Bank extending loans to some companies and enjoying reciprocal benefits. It has been alleged that family members of the bank’s chief, including her husband Deepak Kochhar, got financial favours from borrowers against the loans sanctioned by the bank. It was also alleged that Videocon Group pumped money into Nu-Power Renewables, a firm owned by Deepak Kochhar. Sebi has served a notice on Kochhar on dealings of the bank with Videocon Group and NuPower.
