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ICICI Bank-Videocon loan case: Here's why Chanda Kochhar was sacked

Updated : January 31, 2019 12:51 PM IST

An independent inquiry, based on the Justice Srikrishna report, indicted former ICICI Bank CEO Chanda Kochhar for violating the lender's code of conduct. The private sector bank said it will stop all unpaid retirement benefits and also recover bonuses paid to her since 2009. ICICI Bank, whose board had given a clean chit to Kochhar in the Videocon loan matter earlier, will also treat her resignation as 'Termination for Cause'. From a management trainee to a CEO to a Padma Bhushan awardee and now entangled in a corruption case, Kochhar's rise and fall never failed to make the headlines. Here's a quick look at the controversy surrounding the ICICI Bank-Videocon loan case:

It all started with an Indian Express news report, dated March 31, 2018. The report said that in 2012, an SBI-led consortium with over 20 banks and financial institutions lent Rs 40,000 crore to the Videocon group. ICICI Bank, part of the consortium, lent about Rs 3,250 crore, less than 10 percent of the total consortium facility. However, 86 percent of the amount, Rs 2,810 crore, remains unpaid. (Picture credits: stock image)
It all started with an Indian Express news report, dated March 31, 2018. The report said that in 2012, an SBI-led consortium with over 20 banks and financial institutions lent Rs 40,000 crore to the Videocon group. ICICI Bank, part of the consortium, lent about Rs 3,250 crore, less than 10 percent of the total consortium facility. However, 86 percent of the amount, Rs 2,810 crore, remains unpaid. (Picture credits: stock image)
The Indian Express report said that the investigations for the family were based on allegations of quid pro quo and conflict of interest with respect to the loan extended to the Videocon Group promoter Venugopal Dhoot. (Picture credits: Reuters)
The Indian Express report said that the investigations for the family were based on allegations of quid pro quo and conflict of interest with respect to the loan extended to the Videocon Group promoter Venugopal Dhoot. (Picture credits: Reuters)
According to Securities and Exchange Board of India's (Sebi) preliminary investigations last year, Kochhar’s husband Deepak Kochhar had many business dealings with Videocon Group over the last several years. Deepak Kochhar and Dhoot were co-founders and promoters of NuPower Renewables, besides other associations. (Picture credits:  Getty Images)
According to Securities and Exchange Board of India's (Sebi) preliminary investigations last year, Kochhar’s husband Deepak Kochhar had many business dealings with Videocon Group over the last several years. Deepak Kochhar and Dhoot were co-founders and promoters of NuPower Renewables, besides other associations. (Picture credits:  Getty Images)
Sebi had issued a show cause notice to ICICI Bank, Chanda Kochhar and others after a preliminary probe showed alleged violations of listing disclosure norms. (Picture credits:  Reuters).
Sebi had issued a show cause notice to ICICI Bank, Chanda Kochhar and others after a preliminary probe showed alleged violations of listing disclosure norms. (Picture credits:  Reuters).
ICICI Bank supported and stood by Chanda Kochhar. The bank, in a March exchange filing, said: “The board has come to the conclusion that there is no question of any quid pro quo/nepotism/conflict of interest as is being alleged in various rumours,” the bank said, terming them as “malicious and unfounded.
ICICI Bank supported and stood by Chanda Kochhar. The bank, in a March exchange filing, said: “The board has come to the conclusion that there is no question of any quid pro quo/nepotism/conflict of interest as is being alleged in various rumours,” the bank said, terming them as “malicious and unfounded." (Picture credits: Reuters)
However, in October, Chanda Kochhar resigned. Kochhar has maintained that she had no information about her husband’s business dealings. (Picture credits: IANS).
However, in October, Chanda Kochhar resigned. Kochhar has maintained that she had no information about her husband’s business dealings. (Picture credits: IANS).
After her resignation, she continued to receive the retirement benefits by the bank. However, the bank put an end to the benefits and sacked her on Tuesday after the Justic Srikrishna report. Chanda Kochhar responded saying she is utterly disappointed, hurt and shocked by the bank's decision, and continues to have belief in her conduct as a professional. (Picture credits: PTI)
After her resignation, she continued to receive the retirement benefits by the bank. However, the bank put an end to the benefits and sacked her on Tuesday after the Justic Srikrishna report. Chanda Kochhar responded saying she is utterly disappointed, hurt and shocked by the bank's decision, and continues to have belief in her conduct as a professional. (Picture credits: PTI)
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