A Delhi appellate tribunal has confirmed the Enforcement Directorate’s seizure of properties belonging to former ICICI Bank chief Chanda Kochhar, valued at ₹78 crore. This decision reverses an earlier dismissal by a Mumbai adjudicating authority, establishing a “prima facie” case of money laundering against her and her husband, Deepak Kochhar.

The Appellate Tribunal for Forfeited Property (ATFP) stated that the ₹64 crore transferred from Videocon Group to Deepak Kochhar’s company right after ICICI Bank approved a ₹300 crore loan to Videocon constituted “quid pro quo.” This finding contradicts Chanda Kochhar’s assertions of being unaware of her husband’s business activities.

The tribunal admonished Kochhar for not separating herself from the bank’s sanctioning committee that authorized loans to Videocon Group under the “urgent category,” asserting that she “cannot plead ignorance” regarding her husband’s business ties with the conglomerate.

“It may be true that the issue will be determined by the trial court but we find a prima facie case against the respondents for commission of the offence of money laundering and, therefore, the provisional attachment order is justified,” ruled the ATFP bench, consisting of justice Munishwar Nath Bhandari (chairman) and member Balesh Kumar, on July 3, thereby overturning the Mumbai adjudicating authority’s decision from November 2020.

The case arises from allegations that between June 2009 and October 2011, ICICI Bank approved six high-value rupee term loans amounting to ₹1,875 crore to companies within the Videocon Group. All loans were sanctioned after Kochhar assumed the role of managing director and chief executive.

The ED claims that the Kochhars received a ₹64 crore bribe from Videocon Group chairman Venugopal Dhoot on August 27, 2009—a day following the bank’s disbursement of ₹300 crore to Videocon International Electronics Ltd (VIEL). Kochhar was part of the committee that approved two loans: ₹300 crore to VIEL and ₹750 crore to Videocon Industries Ltd.

In January 2020, the Enforcement Directorate provisionally attached assets belonging to the Kochhars, valued at ₹78 crore, labeling them as proceeds of crime. The properties seized included their apartment at CCI Chambers in Church Gate, Mumbai, where Chanda Kochhar resides, along with cash amounting to ₹10.5 lakh.

However, in November 2020, a Prevention of Money Laundering Act (PMLA) adjudicating authority in Mumbai overturned the attachment. According to PMLA regulations, any attachment must receive confirmation from an adjudicating authority within a period of 180 days.

Senior advocate Vikram Chaudhri, who represents the Kochhars, stated that the adjudicating authority’s ruling “was well reasoned and took into account all aspects” and that the appellate tribunal’s verdict “could be susceptible to challenge on both factual and legal grounds.”

The tribunal dismissed Kochhar’s claim of being unaware of her husband’s business dealings, asserting that she was “expected to act in accordance with the rules and policies of the bank and could not claim ignorance regarding her husband’s associations and affairs.”

“If this is accepted, then any conflict of interest involving a bank officer when approving a loan would be trivialized, as everyone could argue that they were unaware of their spouse’s or relatives’ dealings,” the tribunal remarked.

The tribunal pointed out that rather than distancing herself from loan decisions related to Videocon due to a conflict of interest, Kochhar “not only took part in the meeting but also approved the loan as urgent.”

“This is regarded as nothing less than the commission of a crime, which includes the offense under section 420 (cheating) of the IPC,” the tribunal concluded.

Both Chanda and Deepak Kochhar are presently out on bail. Chanda Kochhar resigned from her position as MD-CEO of ICICI Bank on October 4, 2018, following the emergence of allegations regarding irregularities.