“High Court: Chanda Kochhar’s Arrest Illegal”

Bombay High Court Declares Arrest of Chanda Kochhar and Husband Illegal in ICICI Bank – Videocon Loan Fraud Case

In a significant development, the Bombay High Court has ruled the arrest of former ICICI bank CEO and MD Chanda Kochhar and her husband Deepak Kochhar in the ‘ICICI Bank – Videocon Loan Fraud Case’ as illegal. The court confirmed an interim order from last year that had released the duo.

Justice Anuja Pabhudessai passed the order after a coordinate bench had previously held that their arrest was not prima facie in accordance with the relevant sections of the Criminal Procedure Code (CrPC). The bench rejected the reasons cited by the Central Bureau of Investigation (CBI) for their arrest, including allegations of non-cooperation and non-disclosure of facts.

The court emphasized the importance of Article 20(3) as a safeguard against coercive methods used by investigating agencies, stating that lack of confession does not imply non-cooperation with the investigation.

The CBI had approached the Supreme Court against the interim bail order, but the SC directed them to argue the matter before the Bombay High Court.

Chanda Kochhar and Deepak Kochhar had sought quashing of the FIR and remand orders related to irregularities in loans granted to Videocon Group by ICICI Bank between 2009-2012. They were booked under various sections of the IPC and Prevention of Corruption Act.

Their petition questioned the timing of the arrest, especially as their son’s wedding was scheduled shortly after. They argued that the arrest, after four years of the FIR, was actuated by malafides, especially considering the impending wedding.

The case revolves around allegations that Videocon’s Dhoot paid a firm allegedly set up with Deepak Kochhar and others after his firm received a significant loan from ICICI Bank. The CBI alleges irregularities in the grant of high-value loans to Videocon Group in contravention of sanctioning committee rules.

Senior Advocate Amit Desai argued for Chanda Kochhar, highlighting that she appeared after being summoned and was arrested after a perfunctory interrogation. He emphasized the requirements of Section 41A of the CrPC regarding arrest procedures.

Advocate Kuldeep Patil, representing the CBI, contended that the arrest was necessary for proper investigation due to alleged evasive answers by the Kochhars.

The ruling by the Bombay High Court marks a significant development in the ongoing legal battle surrounding the ICICI Bank – Videocon Loan Fraud Case, highlighting the complexities and legal nuances involved.