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ICICI-Videocon loan case: Lookout circulars issued against Chanda Kochhar , others

Meanwhile, Rajiv Kochhar moved a Delhi court on Wednesday seeking cancellation of the LoC issued against him.

, ET Bureau|
May 15, 2019, 10.57 PM IST
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Agencies
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The ED’s case is based on the predicate offence registered by CBI. The CBI is probing a case of criminal conspiracy and misuse of office against the Kochhars.
MUMBAI: Based on the request by the Enforcement Directorate (ED), lookout circulars (LoCs) have been issued against former MD & CEO, ICICI Bank, Chanda Kochhar, her husband Deepak and her brother-in-law Rajiv Kochhar. This is the second LoC issued against Chanda and Deepak Kochhar. In the past based on a similar request by the Central Bureau of Investigation (CBI), LoC has been against the Kochhar couple.

Meanwhile, Rajiv Kochhar moved a Delhi court on Wednesday seeking cancellation of the LoC issued against him in the said case. The matter will be heard on Thursday.

LoC is a circular used by authorities to check whether a traveling person is wanted by law enforcement agencies. It may be used at immigration checks at international borders (like International airports or sea ports).

The ED is probing an alleged money laundering case against Chanda, Deepak Kochhar and Videocon group chairman, VN Dhoot. Last month, the ED had questioned Rajiv in the said case.

The central agency has zeroed in on two instances of alleged quid-pro-quo. The first pertains to transactions between Videocon and NRL. According to sources, a day after a term loan of Rs 300 crore was sanctioned by ICICI Bank, an amount of Rs 64 crore was transferred by Dhoot to NRL through his company Supreme Energy Pvt Ltd (SEPL).

The second is a similar transaction between NRL and Nishant Kanodia’s Firstland Holdings. According to sources, the Essar Group had invested Rs 163 crore in Firstland, which in turn invested Rs 324.37 crore in NuPower between December 2010 and March 2012.

Separately, in August 2015, Essar Projects India invested another Rs 250 crore in the cumulative redeemable preference shares of Matix. ICICI Bank, a key lender to the Essar Group, had around the same time, lent to Essar’s now-bankrupt US steel project in Minnesota and its UK refinery project at Stanlow. Kanodia is the son-in-law of Essar Group vice-chairman Ravi Ruia. Kanodia was questioned twice by the agency.

The ED’s case is based on the predicate offence registered by CBI. The CBI is probing a case of criminal conspiracy and misuse of office against the Kochhars.

"On August 26, 2009, the bank under Chanda Kochhar sanctioned a loan of Rs 300 crore VIEL “in contravention of rules and policy by the sanctioning committee”, the first information report said. “On September 7, 2009, this loan was transferred to VIEL...On September 8, 2009, Dhoot transferred Rs 64 crore to NRL managed by Deepak Kochhar...this was the first major capital received by NRL to acquire its first power plant,” the FIR said.
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