After Chanda Kochhar was indicted by an independent panel in the controversial Videocon loan case, ICICI Bank said that that board of directors has decided to treat her separation as “Termination for Cause”, and require the “clawback of all bonuses” paid from April 2009 until March 2018. The bank will treat her resignation tendered in October 2017 as sacking.
On October 4, 2018, Chanda Kochhar resigned from her post at the bank, nearly four months after being sent on leave amid the allegations. In a detailed statement to stock exchanges, the bank said that the enquiry report, under former Supreme Court judge B Srikrishna, found Kochhar was in violation of the code of conduct, its framework for dealing with conflict of interest and fiduciary duties.
“The Board of Directors decided to treat the separation of Ms Chanda Kochhar from the Bank as a
‘Termination for Cause’… and require the clawback of all bonuses paid from April 2009 until March
2018, and to take such further actions as may be warranted in the matter,” the bank said.
ICICI Bank, under Kochhar’s leadership, was part of the consortium that lent to Videocon Group. The allegation is that Kochhar’s husband Deepak Kocchar and other relatives were involved in a firm floated by Videocon’s promoter Venugopal Dhoot.
According to an FIR filed by CBI on January 25, “the accused (Chanda Kochhar) sanctioned certain loans to private companies in a criminal conspiracy with other accused to cheat ICICI Bank”.