Chanda Kochhar was part of the committee or present in meetings where 46 per cent proposals of Videocon Group were agreed to, and out of which eight proposals amounting to Rs 5,394 crore were sanctioned after she became MD and CEO of ICICI Bank, the Enforcement Directorate (ED) said in its charge sheet in connection with ICICI-Videocon loan case.
The 308-page charge sheet filed by ED before a Special Prevention of Money Laundering Act (PMLA) court here last month, which has been viewed by IANS, claimed that the investigations under PMLA revealed: “Chanda Kochhar was part of the committee or present in the meeting in 28 proposals (46 per cent of all proposals) of Videocon Group.
“Out of 28 proposals, eight proposals amounting to Rs 5,394 crore were sanctioned to Videocon Group after she became the MD and CEO of ICICI Bank."
The ED claimed that during her tenure as MD and CEO, in four proposals of Videocon Group of companies, she was part of both the recommending as well sanctioning committees.
THe ED further said that in regard to the Rupee Term Loan ((RTL) sanctioned to Videocon Group of companies by ICICI Bank, she was part of the decision-making process of three loans.
It said she chaired the meeting of sanctioning committee on August 26, 2009 for RTL of Rs 300 crore to Videocon International Electronics Ltd (VIEL).
She also presided over the meeting of recommending committee and sanctioning committee for Rs 750 RTL to Videocon Industries Ltd (VIL), having chaired the meeting of the recommending committee on October 28, 2011 and being the member of the sanctioning committee meeting on October 31, 2011.
The ED claimed that similarly she was part of both recommending and sanctioning committee for the Rs 1,730 crore RTL.
“She chaired the meeting of recommending committee on April 24, 2012 and was member of the sanctioning committee meeting on April 26, 2012," it said.
THe ED also claimed that out of the seven RTLs mentioned in the CBI FIR, five RTL proposals were put up as urgent proposals.
“Four RTL proposals including Rs 300 crore crore loan proposal to VIEL, out of five RTL urgent proposals were placed directly before the sanctioning and recommendation committee in hard copy. ICICI Bank has submitted that the copy of urgent proposals put up in hard copy before the sanctioning committees of ICICI Bank in regard to proposals of Videocon Group are not traceable," it said.
It further said that in urgent proposals, the proposal is placed before the sanctioning committee without the comments or inputs of any control group (including Risk Management Group) or risk rationale.
According to ED, the chair and members of the committee has the entire discretion to admit or not to admit a proposal based on their persual of the note of the meeting. Urgent proposals didn’t fulfill the objective of comprehensive broadcast (theorotically as well as practically) i.e being visible beforehand to the members of committee and to all the control groups (who could have verified at their end that their comments have been incorporated/addressed in the uploaded final note.
“Rs 300 crore proposal of VIEL sanctioned on August 26, 2009 was also urgent proposal which was sanctioned by the sanctioning committee of ICICI Bank of which Chanda Kochhar was the chairperson, therefore she had the discretion to admit or not to admit this proposal for consideration in the meeting. Post approval of the sanctioning committee, the proposal note was modified and uploaded on secretarial website within six days," it said.
The ED filed its first charge sheet in the ICICI-Videocon loan case in first week of November this year, naming Chanda and Deepak Kochhar, Videocon’s Venugopal Dhoot and VIEL, Videocon Industries Ltd, NPRL and Supreme Energy Pvt Ltd (SEPL), among others.
Deepak Kochhar is currently in judicial custody after he was arrested by the ED.
The case pertains to alleged irregularities in sanctioning six loans worth Rs 1,875 crore to Videocon Industries Ltd, Videocon International Electronics Ltd and four other companies associated with the Videocon group between June 2009 and October 2011.
The loans were issued in the alleged violation of the laid-down policy and regulations of the bank, sources said.
As the term loan of Rs 300 crore sanctioned to VIEL was disbursed on September 7, 2009, Dhoot, the very next day, transferred Rs 64 crore to Deepak Kochhar’s NuPower Renewables Ltd through Supreme Energy Private Ltd founded by him.