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Videocon loan case: ICICI Bank, Kochhar get notices from SEBI

Our Bureau New Delhi | Updated on May 25, 2018 Published on May 25, 2018

Chanda Kochhar   -  REUTERS

Market regulator seeks response on alleged non-compliance with erstwhile listing pact

ICICI Bank, the country’s largest private lender, on Friday said that market regulator SEBI has served notice on its MD & CEO Chanda Kochhar and the bank in the Videocon loan case.

The notice related to ICICI Bank’s dealings with the Videocon Group and NuPower, an entity in which Chanda Kochhar’s husband Deepak Kochhar has a business interest.

“Appropriate response would be submitted to the SEBI,” said ICICI Bank in a filing to the bourses on Friday, confirming that the bank and its MD & CEO were in receipt of the SEBI notice on Thursday.

The Central Bureau of Investigation had launched a preliminary investigation into a ₹3,250-crore loan that ICICI Bank had extended to Videocon in 2012 and the possible role of Deepak Kochhar.

It was alleged that Videocon Chairman Venugopal Dhoot invested ₹64 crore in NuPower Renewables, a firm owned by Deepak Kochhar, after Videocon secured a loan from a consortium of banks, including ICICI Bank.

ICICI Bank has denied any wrongdoing in the loan transaction, saying it was part of a consortium of lenders that extended the facility to Videocon.

Last month, ICICI Bank Chairman MK Sharma had asserted that the Board has full confidence in Chanda Kochhar and ruled out any quid pro quo as alleged with regard to the loan given to the Videocon group.

Earlier, ICICI Bank had clarified that none of investors of NuPower Renewables is a borrower of ICICI Bank.

“The MD & CEO and the Bank received a notice from SEBI on May 24, 2018 ... requiring responses on matters relating to alleged non-compliance with certain provisions of the erstwhile Listing Agreement and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,” said the ICICI Bank in the filing.

Published on May 25, 2018
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