Money & Banking

ICICI Bank files petition in Bombay HC to recover money from Kochhar

Our Bureau Mumbai | Updated on January 13, 2020 Published on January 13, 2020

Chanda Kochhar, Former ICICI Bank CEO. File Photo   -  Bloomberg

ICICI Bank in a monetary suit filed on January 10 has sought dismissal of Kochhar’s petition and stated that the issue can be decided in a commercial suit

Private sector lender ICICI Bank has filed a petition in the Bombay High Court seeking recovery of the money including bonuses paid to its former Managing Director and CEO Chanda Kochhar as well as seeking effect of termination of appointment.

A division bench of Justices RV More and SP Tavade who heard the case on Monday have directed Kochhar’s lawyers to go through the affidavit. The case will now be taken up for hearing on January 20.

Kochhar had moved the Bombay High Court on November 30 challenging the termination of her appointment by ICICI Bank, which had also clawed back her bonuses and denied her remuneration. This was in relation to her alleged involvement in granting loans of over ₹ 3,700 crore to Videocon Group which benefited her husband Deepak Kochhar.

According to a PTI report, ICICI Bank in a monetary suit filed on January 10 has sought dismissal of Kochhar’s petition and stated that the issue can be decided in a commercial suit.

“ICICI has filed a suit seeking recovery of amounts towards the claw back of bonuses given to the petitioner (Kochhar) from April 2006 to March 2018 pursuant to the termination of the petitioner’s services,” the bank said in its affidavit.

The affidavit was submitted in response to a petition filed by Kochhar challenging her sacking, months after she voluntarily left the second largest private sector lender.

“On December 8, 2016, Kochhar executed a claw back agreement with the bank pursuant to which ICICI is entitled to a return of the previously paid variable pay or deferred variable pay from the petitioner in the event of a determination of a gross negligence or an integrity breach by Kochhar, the affidavit said, adding that her conduct has caused substantial embarrassment to the bank and all the stake-holders, and has led to irreparable reputational loss to the bank.

The bank further stated that Kochhar flagrantly violated the ICICI Group Code of Business Conduct and Ethics.

Published on January 13, 2020
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