Apex Court Issues Notice In CBI's Plea Challenging Order Declaring Arrest Of Chanda Kochhar And Deepak Kochhar In Loan Fraud Case 'Illegal'

The Supreme Court has issued notice in the SLP challenging the decision of the Bombay High Court, rendering the arrest of former Managing Director and Chief Executive Officer (CEO) of ICICI Bank Chanda Kochhar and her husband Deepak Kochhar 'illegal' in the Videocon Loan Fraud case.

A Special Leave Petition filed by the Central Bureau of Investigation ('CBI') challenging the said order which also held that the exercise of the right to remain silent by the accused could not be equated with non-co-operation.

The Bench of Justice Sanjiv Khanna and Justice Sanjay Kumar ordered, "Issue notice and tag with Special Leave to Appeal (Cri.) 7068 of 2023. Notice will be served by all modes including dasti. List along with SLP..."

Additional Solicitor General SV Raju appeared on behalf of the CBI.

Justice Khanna said, "You have a point, as far as 41 is concerned, the language is not that stringent...but then judgments of this court show you have to justify the arrest."

Raju replied, "We have justified the arrest, the High Court says that it is not a sufficient justification."

Justice Khanna then asked, "How long was she inside?"

Raju replied, "She was arrested on 23.12.2022...hardly for a month she was in jail."

The brief facts of the case are that on December 8, 2017, the CBI had registered a preliminary inquiry in view of the information that during the period from 2009 to 2012, the officials of ICICI Bank had sanctioned credit facilities/high-value loans to the Videocon Group of Companies promoted by Venugopal Dhoot, in violation of the Banking Regulation Act under RBI guidelines and the credit policy of the Bank. Kochhar was one of the members of the sanctioning committee. It was alleged that as a part of quid pro quo, Dhoot made the investment of Rs.64 Crores in NuPower Renewables Pvt. Ltd. (NRPL) through M/s. Supreme Energy Private Limited (SEPL), and also to Pinnacle Energy Trust managed by Deepak Kochhar, through a circuitous route. It was also alleged that the flat at CCI Chambers owned by the Videocon Group was sold to the family trust of Deepak Kochhar for Rs.11 lakhs, though the value of the flat was Rs.5.25 Crores. The preliminary inquiry had revealed that Kochhar had abused her official position in sanctioning a loan to M/s. VIEL and got illegal gratification through her husband Deepak Kochhar.

They had filed writ petitions seeking quashing of FIR, their arrest, and remand order passed by the Special Judge, CBI, before the Bombay High Court. The High Court had observed, "The arrest on 23.12.2022 was not on the basis of any additional material discovered in the course of the investigation, but was based on the same material which was within the knowledge of the Investigating Officer at the time of issuance of notice under Section 41A. Such routine arrest without application of mind and due regard to the law amounts to an abuse of power and does not satisfy the requirement of Section 41A(3) Cr.P.C.”

The High Court in January 2023 had also granted interim bail to Kochhar after hearing both sides.

The Special Court in Mumbai had sent them and Videocon group founder Venugopal Dhoot to judicial custody till January 10, 2022, and previously till December 26, 2022, in connection with the case.

Cause Title: Central Bureau of Investigation v. Chanda Kochhar and Ors. (Diary No. 24077/2024)