Author: Nitish, Student of St. Soldier Law College, Jalandhar
To the point
ICICI Bank: A leading private sector bank. In year 2016, Arvind Gupta wrote about the various loopholes of banking system. He alleged about a rupees 3250 Cr. Loan which ICICI bank extended to Videocon.
Arvind Gupta challenged the agreement between ICICI bank and Videocon to be illegal. And said that, The chairman of Videocon company had friendly relationships with the Chanda Kochhar (MD of ICICI bank) and her husband Deepak Kochhar. On which terms Chanda Kochhar passed the loan to the Videocon while knowing that Videocon can become bankrupt in future according to their current situation. She done everything only for personal monetary and non-monetary benefits.
In 2018, another whistleblower revealed many things over alleged malpractices by top administration of ICICI bank and Arvind Gupta met to board of directors of ICICI bank. When this thing reached to the Chanda Kochhar she applied for the early retirement. The bank accepted the application of Chanda Kochhar and said to give the retirement benefits to her. After sometime, the inquiry was conducted by ICICI bank regarding scam of 3250 crores and appeared Chanda’s role in it. After that her early retirement application of Chanda Kochhar cancelled and terminated by bank.
After investigation by ED and CBI, the FIR was filed against Chanda Kochhar, Venugopal Dhoot and Videocon on behalf of criminal conspiracy and prevention of corruption act. In December 2020, after investigation for 2-3 years, Chanda Kochhar, Deepak Kochhar and Venugopal Dhoot arrested And forfeited their assets by govt. of India.
Use of legal jargon:
ICICI bank gave loan of about 3250 crores to six companies of Videocon group in between the year 2009 to 2012. Chanda Kochhar gave loans to the Videocon without following rules of RBI and the credit policies. FIR was filed against Chanda Kochhar, Deepak Kochhar, Venugopal Dhoot including Nupower renewable, supreme energy, Videocon on behalf of criminal conspiracy and prevention of corruption act.
Abstract:
An mastermind investor, who critically analysis the company for securing himself from financial risk and also played a role as whistleblower to the country for expose the biggest scam. This article is case study of ICICI scam. Dr Arvind Gupta has emerged as the whistleblower in the alleged bank fraud. Chanda Kochhar, who was the main lady for this scam. While investigation, CBI found that, Videocon international electronic ltd get first loan of 300 crores and after that for 3250 crores by ICICI bank. Sanction committee passed loan by influence of Chanda Kochhar by knowing that Videocon company is incapable to return in future. She done this only for bribe.
Conclusion
By summarising all the facts of this scam, we come on this point that in India we have to face several scams like ICICI bank and Indian banks have to bear the losses caused by it. To prevent these kind fraud, there is a method named PER (prevention, early detection and reporting of the loan fraud). From year 2008, Chanda Kochhar, Deepak Kochhar and Venugopal Dhoot were malpractices. The ICICI bank- Videocon is the stark reminder of the importance of accountability and transparency in the banking system.
FAQS
What is ICICI bank scam?
ICICI- Videocon scam is a criminal conspiracy done by Chanda Kochhar as MD of the bank, she misused her position by sanctioning 3250 crores to the Videocon group knowing that the given money have high chances to become NPA in future, for her personal monetary and non monetary benefits.
What is the summary of ICICI bank scam?
In year 2016 Arvind Gupta (investor in bank), wrote about the loopholes of banking system while highlighting the loan passed by the MD of ICICI bank of rupees 3250 crores. He played a role to unveil the malpractices by Chanda Kochhar and her husband. Chanda Kochhar passed loan for 3250 crores while having knowledge that the loan amount have high chances to become NPA amount. After investigation for 2 to 3 years, Chanda Kochhar, her husband and Venugopal Dhoot were arrested for criminal conspiracy.
What is the full form of NPA?
The full form of NPA is “NON-PERFORMING ASSET”.
