Supreme Court in ICICI Bank Loan Fraud Case Issues Notice in CBI’s Plea Challenging Bail Granted to Videocon Group Chairman Venugopal Dhoot

Supreme Court in ICICI Bank Loan Fraud Case Issues Notice in CBI’s Plea Challenging Bail Granted to Videocon Group Chairman Venugopal Dhoot

The Supreme Court by its division judges bench comprising of Justices AS Bopanna and MM Sundresh issued notice in Central Bureau of Investigation’s plea seeking challenging the order passed by the Bombay High Court whereby interim bail was granted to Videocon Group Chairman Venugopal Dhoot in the ICICI Bank Loan fraud case.

Previously, in the writ petition before the High Court, Dhoot had alleged arrest by the CBI. Dhoot had sought quashing of the special CBI Court’s remand orders of 26, 28 and 29 December, 2022 and had asked the High Court to declare his arrest in gross violation of Sections 41 and 41A of the Code of Criminal Procedure, 1973 (CrPC) and Article 14, 19(1)(d) and 21 of the Constitution of India. It was argued before the High Court that the only reason cited in the ‘arrest memo’ was ‘kept changing his versions and therefore not cooperating with the investigation.’

The Apex Court bench issued notice after briefly hearing submissions made by the Additional Solicitor General (ASG), SV Raju, appearing on behalf of CBI. The ASG submitted that the bail was granted on a hyper-technicality in respect to Section 41 CrPC. It was argued that it is not required that the investigating officer explains on the reason for arrest in the memo, since the case diary discloses a detailed account of the same.

The ASG apprised the Bench that the bail was granted without perusal of the case diary.

The ASG contended, “This is a case of cheating of INR 1730 crores…and he was granted bail on a hyper-technical ground on non-compliance of Section 41 CrPC. On law also it is not correct. The investigating officer need not elaborately state. The case diary will state everything. Without perusal of the case diary bail is granted.”

The brief background of the case is that CBI began investigating the accused in January 2018 after reports that Videocon's Dhoot paid a firm, which was allegedly set up with ex-ICICI Bank MD Chanda Kochhar’s husband Deepak Kochhar (both are co-accused) and two relatives, six months after his firm availed a loan of Rs. 3,250 crores from ICICI Bank in 2012.

The default in payment was related to the grant of six high-value loans worth around Rs. 1,575 crores to five firms of the Videocon Group between June 2009 and October 2011. The loans were granted in contravention of the rules and policy of the sanctioning committee, the agency has alleged.

These loans were later termed as non-performing assets resulting in wrongful loss to ICICI bank and wrongful gain to the borrowers and accused persons, the CBI said. The total misappropriation is to the tune of Rs. 1730 crores as on 26 April, 2012, according to the CBI.

Thereafter, Dhoot was arrested after the Kochhars were charged under Sections 7, 13(2) read with Section 13(1) and (d) of Prevention of Corruption Act, 1988, 420 and 120 B of Indian Penal Code, 1860 in the case being investigated by the CBI.