Private sector bank ICICI said on Wednesday that the bank has decided to conduct an independent inquiry against its managing director and CEO Chanda Kochhar. This investigation is being done after the allegations made by the unknown ‘Whistle Blower’ about mismanagement of funds by Chanda Kochhar. ICICI Bank has stated in the regulatory filing that the investigation will be headed by an independent person. The bank’s board has said that the audit committee will take further decision in this matter. The committee will determine the head of the investigation team, terms of reference and timeframe.
The audit committee will assist the Chief Investigator with an independent legal and professional support. The bank is accused of taking the favor of the Videocon group and giving it a loan facility in which the rules have been violated. This loan was given to Kochhar’s husband’s company. Income Tax Department issued a new notice to Deepak Kochhar in the case of tax evasion. Deepak Kochhar is the husband of private sector ICICI Bank’s Managing Director and CEO Chanda Kochhar. This case is linked to the ICICI Bank-Videocon loan case. It is alleged that borrowers gave financial benefits to Chanda Kochhar’s family in exchange of getting loans from ICICI Bank. The investigation of the case is being done by several agencies including CBI and Income Tax Department.