Chanda Kochhar moves Bombay HC against her arrest in the Videocon loan case

Bench: Justices Madhav Jamdar and SG Chapalgaonkar

On Tuesday, Chanda Kochhar and Deepak Kochhar, former Managing Director and Chief Executive Officer (CEO) of ICICI Bank, challenged their arrest by the Central Bureau of Investigation (CBI) in a case related to irregularities in loans to Videocon Group founder Venugopal Dhoot.

The bench, however, refused to grant an immediate hearing to Kochhar.

Advocate Kushal Mor argued that the arrest of Kochhar was illegal on two grounds.

First, the agency did not obtain sanction before arresting a public servant, which is mandatory under Section 17A of the Prevention of Corruption Act.

Second, the arrest was made after 4 years from the date of registration of the FIR. Therefore, a violation of Section 41A of the Code of Criminal Procedure.

Mor requested the bench to urgently hear the case and release Kochhars till the petition is finally heard.

The vacation bench, however, said that the FIR did not have any pressing urgency.

The court asked Mor to plea before the regular court for bail.

Background

On 24 December, the couple was arrested (Delhi) and produced before the special CBI Court in Mumbai on the accusation of cheating in granting a loan of ₹3,250 crores to the Videocon Group in 2012. The loan became a non-performing asset for ICICI Bank.

A whistleblower alleged that the Kochhar family benefited from the dealings. Further, Kochhar had also cleared a loan for the Videocon Group of Companies. As quid pro quo, her husband's company received investment from Videocon.

Later, the loan was termed bank fraud as it turned into an NPA.