“…due process was followed while granting the loan” but “considering the allegations of bribery and corruption, we approve”, counsel Amit Desai quoted the bank’s communication to the CBI.
He read out the contents of the bank’s letter opposing the agency’s demand for custody of the former banker and her businessman husband, arrested by the agency on Friday.
Kochhar is facing probe into alleged irregularities in loan sanction Videocon GroupA case has been registered under certain sections of the Prevention of Corruption Actwith the charges of cheating and criminal conspiracy under Indian Penal Code, Under the Prevention of Corruption Act, prosecution requires the approval of a competent authority.
Desai argued that the CBI had erred on the basis of facts in the case.
Desai said, “…when the bank has specifically stated that there was no wrongful loss to the bank in any of these transactions, how can the CBI say that it is a case of wrongful loss.” He said that the bank has clearly mentioned the error of facts in the CBI FIR. “Contrary to CBI’s claims, the loans were sanctioned following due process,” he said, adding that RBI guidelines were not violated.
Desai also argued that the letter granting sanction to prosecute Kochhar was signed by the legal head of ICICI Bank who could not be considered as a “competent authority” to sanction prosecution against a Managing Director and CEO. “The clearance has not been given by the competent authority,” he claimed. People familiar with the matter told ET that the sanction to prosecute Kochhar was given by ICICI Bank’s board, but its legal team had informed the CBI. One of them said, “It doesn’t matter who communicates… It may be the company’s internal policy, but the fact is that the bank has given sanction to prosecute.”
On no wrongful loss to the bank, the person said the CBI is probing the exact nature of the loss and it will be detailed in the charge sheet.