ICICI Bank Tells HC That Kochchar’s Plea Has No Legal Basis

The ICICI Bank has told the Bombay High Court that former ICICI Bank CEO Chanda Kochhar’s writ petition challenging the validity of her termination by it is not maintainable.

The bank told the court that it is a private banking company and Kochhar’s writ petition seeks to contest what are “purely private contractual terms”. Hence, Kochhar’s writ petition did not have a legal basis, the bank argued.

The ICICI Bank has sought recovery of bonuses paid to Kochchar from April 2006 to March 2018 after it terminated her services.

It may be recalled that Chanda Kochhar had moved the Bombay High Court on November 30, 2019, challenging “termination” of her employment by ICICI Bank, which also denied her remuneration for her alleged role in granting “out of turn loans worth Rs 3250 crore to Videocon Group which benefited her husband Deepak Kochhar”.

Incidentally, the Central Bureau of Investigation (CBI) is investigating any conflict of interest involving loans to Videocon Industries under Chanda Kochhar’s leadership and her husband Deepak Kochhar receiving a favorable financial deal from Videocon promoter Venugopal Dhoot.

Earlier, the ICICI Bank had given a composite reply to the court about all objections raised by Kochhar stating that Section 35B of the Banking Regulation Act of 1949, under which she has sought nullification of the termination of her services, is a “regulatory provision”.

The Reserve Bank of India (RBI) had also stated that its approval to her termination was within its jurisdiction and was given after considering the request of Kochhar’s former employer, ICICI Bank.