ICICI Bank-Videocon Case: Chanda Kochhar Violated Code Of Conduct

The Justice (Retd.) B. N. Srikrishna headed committee has submitted its report saying the ex-CEO Chanda Kochhar had violated ICICI Bank's code of conduct. Based on the report the lender released a statement on Wednesday saying "The Enquiry Report, with the scope period of April 1, 2009 to March 31, 2018 (unless specific information required enquiry into transactions or facts of an earlier period), concluded, primarily on account of ineffectively dealing with conflict of interest and due disclosure or recusal requirements, that Ms Chanda Kochhar was in violation of the ICICI Bank Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations."

The statement further said the bank would "treat the separation of Ms Chanda Kochhar from the Bank as a 'Termination for Cause' under the Bank's internal policies" which would mean that all her existing and future entitlements would be recovered. It also said that all it would require the clawback of all bonuses paid between April 2009 to March 2018. The full text reads:

"Following the receipt of the Enquiry Report, and due consideration of the Enquiry Report and the conclusions thereat, after due deliberations, the Board of Directors decided to treat the separation of Ms Chanda Kochhar from the Bank as a 'Termination for Cause' under the Bank's internal policies, schemes and the Code of Conduct, with all attendant consequences (including revocation of all her existing and future entitlements such as any unpaid amounts, unpaid bonuses or increments, unvested and vested & unexercised stock options, and medical benefits), and require the clawback of all bonuses paid from April 2009 until March 2018, and to take such further actions as may be warranted in the matter. Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor' under applicable securities laws including the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements."

Back in 2012 when a loan of Rs 3,250 crore was sanctioned to the Videocon Group, Chanda Kochhar was on the bank's credit committee. Videocon's promoter Venugopal Dhoot was one of the first people to invest in NuPower Renewables in 2008, the company promoted by Chanda Kochhar's husband, Deepak Kochhar.