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Chanda Kochhar misled RBI on $365 million loan to Essar group firm despite red flag: Report

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Published: May 2, 2019 4:16:56 PM

Former ICICI Bank CEO Chanda Kochhar allegedly misled Reserve Bank of India (RBI) on the loan disbursed to holding company of Essar Steel Minnesota LLC in 2014, The Indian Express reported citing various sources.

videocon group, videocon group loan default, cbi, videocon group cbi, videocon group icici bank, videocon group loan, nupower, chanda kochhar, icici bank ex ceo, icici bank chanda kochhar, chanda kochhar cbi,In July 2014, the RBI red-flagged the Bank’s move to approve loan to the company for an extension in project capacity for manufacturing steel pellets.

Former ICICI Bank CEO Chanda Kochhar allegedly misled Reserve Bank of India (RBI) on the loan disbursed to holding company of Essar Steel Minnesota LLC in 2014, The Indian Express reported citing various sources. The $365 million loan was disbursed by ICICI Bank even as the central bank pointed towards various irregularities in lending to the Mauritius-based holding company of the firm, the report added.

In July 2014, the RBI red-flagged the Bank’s move to approve loan to the company for an extension in project capacity for manufacturing steel pellets. The RBI claimed that the consent was indicative of ‘ever-greening of loans’, the report noted. The Bank was also asked to classify the loan as a ‘sub-standard asset.’

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In September 2014, the Bank told the RBI that it had not ‘participated in any additional funding’, even as capacity increase was approved by it. The records, however, show a $365-million foreign currency term loan to  Essar Steel Ltd, Mauritius.

Chanda Kochhar was part of the credit committee meeting that disbursed loan to the Mauritius-based holding company of Essar Steel Minnesota LLC, the report noted. The loan proposal document to Essar Steel Mauritius did not refer to most of the objections raised by the RBI, The Indian Express report also said.

Meanwhile, Chanda Kochhar and her husband Deepak, who are facing probe in the alleged money laundering and quid-pro-quo in granting loans to Videocon group, have sought more time from ED which had asked them to appear before it for interrogation on April 30. The agency has fixed May 11 as the latest date for them to appear before it. A couple of days back, the agency also questioned Chanda Kochhar’s brother-in-law Rajeev Kochhar for the third straight day in relation with the case.

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