CBI begins preliminary enquiry into alleged irregularities in ICICI Bank giving loans to Videocon

Videocon Industries and its promoters have come under the regulator’s scanner as the matter relates to alleged “quid pro quo” involving loans to the firm by a group of lenders, including ICICI Bank. File  

A preliminary enquiry is converted into a regular case only after the investigating agency finds prima facie commission of any offence.

The CBI has instituted a preliminary enquiry into the alleged wrongdoings by ICICI Bank while extending loans to the Videocon group, naming Deepak Kochhar, husband of MD & CEO of the bank Chanda Kochhar, and a senior Videocon group functionary.

A CBI spokesperson confirmed that the probe was initiated about two months ago to verify certain allegations.

A preliminary enquiry is converted into a regular case only after the investigating agency finds prima facie commission of any offence.

The preliminary enquiry is learnt to have been initiated into certain alleged financial transactions months after Videocon group received ₹3,250 crore in loans from ICICI Bank about six years ago.

It has been alleged that Videocon group chief had infused funds into NuPower Renewables, floated with Mr. Kochhar and others, through a fully-owned entity.

The company's ownership was transferred to a trust owned by Mr. Deepak Kochhar for a small amount, it is alleged.

ICICI Bank has denied any conflict of interest on the part of Ms. Kochhar in sanctioning loans to Videocon group.