ICICI Bank Controversy: Corporate Affairs Ministry Summons Deepak Kochhar
Corporate Affairs ministry summons Deepak Kochhar in connection with lapses in ICICI bank’s loans to his company, NuPower.
The Corporate Affairs Ministry has summoned Deepak Kochhar, husband of the ICICI Bank Ltd.’s chief Chanda Kochhar, later this month as the inspection around allegations of nepotism progresses into the six companies linked to bank.
A senior ministry official said Deepak Kochhar will questioned in connection with the case. However, specific details could not be immediately ascertained. Deepak Kochhar is the founder and CEO of NuPower Group, as per its website.
Alleged lapses involving ICICI Bank Ltd.'s Managing Director and Chief Executive Officer Chanda Kochhar, her husband and other family members, with respect to a loan extended to Videocon Industries by the lender have come under the regulatory lens. NuPower Renewables and NuPower Wind Farms are among the six companies whose books are being inspected by the ministry.
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On April 23, the ministry ordered an inspection of “books and papers” of the six companies. These are NuPower Renewables Pvt Ltd., Supreme Energy Pvt Ltd., Pacific Capital Services Pvt Ltd., Videocon Industries Ltd., NuPower Wind Farms Ltd. and EchandaUrja Pvt Ltd.
According to Section 206 (5) of the Companies Act, the central government may, if it is satisfied that the circumstances so warrant, direct inspection of books and papers of a company by an inspector appointed by it for the purpose. The inspection is being carried out by the office of the Regional Director (Western Region) under the ministry.
Last month, Minister of State for Corporate Affairs PP Chaudhary said the inspections into these six companies were “under progress”. Chanda Kochhar and her family members are also facing allegations ‘conflict of interest’ and ‘quid pro quo’ with respect to loans extended to certain entities. The case is already being looked into by the Reserve Bank of India, the Securities and Exchange Board of India and the Central Bureau of Investigation.