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    ICICI-Videocon loan fraud case: Quid pro quo in Kochhars' South Mumbai flat deal, says CBI

    Synopsis

    "In 2009, while VN Dhoot (of Videocon) transferred the ownership of the flat in CCI Chambers for ₹11 lakh, in the same year, another flat in the same society was sold for ₹10.6 crore. In subsequent years in 2010 and in 2019, flats in the same society have been sold for ₹16 crore and ₹18.50 crore, respectively," the person said, quoting the chargesheet.

    Chanda Kochhar and her businessman husband Deepak Kochhar.IANS
    This analysis is part of the chargesheet to ascertain the agency's contention that the flat was a gratification given to the Kochhars by Dhoot in lieu of the loans sanctioned to the Videocon group of companies, the person added.
    The Central Bureau of Investigation probing the ICICI Bank-Videocon bribe-for-loan case in its chargesheet has affixed a comparative analysis of the sale of apartments in South Mumbai's tony CCI Chambers and concluded the transfer of a house to terminated bank chief Chanda Kochhar’s husband, Deepak to be an instance of “quid-pro-quo”, a person in the know said.

    “In 2009, while VN Dhoot (of Videocon) transferred the ownership of the flat in CCI Chambers for Rs 11 lakh, in the same year, another flat in the same society was sold for Rs 10.60 crore. In subsequent years in 2010 and in 2019, flats in the same society have been sold for Rs 16 crore and Rs 18.50 crore, respectively,” the person said, quoting the chargesheet.

    This analysis is part of the chargesheet to ascertain the agency’s contention that the flat was a gratification given to the Kochhars by Dhoot in lieu of the loans sanctioned to the Videocon group of companies, the person added.

    The CBI alleged that Dhoot was “coerced” by Chanda Kochhar’s husband, Deepak, to part with the ownership of the South Mumbai apartment.

    Last week, the federal agency filed its first chargesheet in the case against five individuals and four entities including Chanda Kochhar, her businessman husband and Videocon group chairman Dhoot. The agency has also made Dhoot’s nephew, Saurabh Dhoot, a former director of Videocon International Electronics Ltd (VIEL), and the company’s chartered accountant, Dattatraya Kadam, as accused.
    Growfast

      A Mumbai court has yet to take cognisance of the chargesheet for want of sanction from ICICI Bank to Kochhar, as mandated under the Prevention of Corruption Act.

      The Kochhars and Dhoot have denied any wrongdoing.

      When reached for a comment counsel for the Kochhars said they cannot comment on the matter as the chargesheet hasn’t been served upon the accused. “We haven’t received a copy so we won’t be in the position to comment,” advocate Rohan Dakshini told ET.

      Evergreening of funds
      According to the CBI, the loan deals with the Videocon group when Kochhar was at the helm of ICICI Bank had caused a loss of Rs 1,033 crore to the lender. “The bank has shared a letter stating that the said amount is outstanding,” according to the chargesheet, another person said.

      “While in July 2021, the bank in its communique to the CBI had claimed there was no wrongful loss caused to the bank, the probe has revealed otherwise,” said the person. “...six loans were sanctioned by the bank to Videocon group-related entities when Kochhar was its MD & CEO. These loans were used for the purpose of ‘evergreening’. So even if the contentious loan of Rs 300 crore was repaid as claimed by the accused and the bank, the same was done by availing of fresh loans. Also, the said loan (Rs 300 crore) was diverted and a sum of Rs 64 was used to pay bribe, thereby comprising another instance of quid pro quo,” added the person.

      The agency has detailed out the circumstances in which the six loans were issued to Videocon entities. “…all these loans were sanctioned after Kochhar took charge. Out of the six loans, Kochhar was on the sanctioning committee in two loans: an RTL (rupee term loan) of Rs 300 sanctioned to Videocon International Electronics Ltd and another RTL of Rs 750 crore to VIL (Videocon Industries Ltd),” said another person, also citing CBI’s charges.

      According to the CBI, of the Rs 300 crore sanctioned to VIEL, Rs 64 crore was transferred by Dhoot to Deepak Kochhar’s company a day after the loan was disbursed on September 7, 2009.

      Dhoot allegedly transferred the money to Deepak Kocchar’s NuPower Renewables Ltd through his company, Supreme Energy Pvt Ltd (SEPL), the person said. He also sold his shares to Pinnacle Energy Trust, managed by Deepak Kochhar.

      People in the know said a July 2021 letter from ICICI Bank “granting prosecution sanction” against its former chief was part of the chargesheet running over 10,000 pages. Now, sanction to prosecute her is awaited, they said.

      Two new accused
      On the roles of Saurabh Doot and Kadam, the chargesheet said Kadam “dishonestly issued a false certificate, certifying that the amount paid to VIL by VIEL has been utilised by VIEL as advances to suppliers”, according to one of the people cited earlier. Saurabh Dhoot submitted the false certificate to the bank, the CBI claimed.

      The CBI has told the court that the role of other senior bank officials also needed to be investigated and had sought permission under the Code of Criminal Procedure to continue further investigation.

      Dhoot alleges coercion

      According to earlier CBI’s court filings reviewed by ET, Dhoot and Deepak Kochhar were engaged in civil litigation since 2003 over a payment of Rs 5.38 crore and interest thereupon sought by Dhoot from Deepak Kochhar in respect to the south Mumbai flat, in CCI Chambers. On April 8, 2009, the suit was disposed of by filing of consent terms by Videocon Industries Ltd and Deepak Kochhar’s Credential Finance Ltd for conveying the title of property to a Videocon-nominated company by way of conveyance deed. In May of that year, Chanda Kochhar was appointed as the MD & CEO of ICICI Bank. In August, the flat was transferred to Quality Appliance Pvt Ltd, a Videocon-nominated company, by Credential Finance. Subsequently, in 2016, all shares of Quality Appliance Pvt Ltd were purchased by the family trust of Deepak Kochhar -- Quality Advisor -- for Rs 11 lakh.
      Quid Pro Quo in Kochhars’ SoBo Flat Deal: CBI



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