The PE is an internal mechanism of the CBI to verify allegations. As part of the procedure, the CBI collects material to determine if there is prima facie criminality requiring registration of an FIR. This comes after ICICI Bank shareholder Arvind Gupta accused Kochhars of amassing "wrongful personal gains" after private sector lender sanctioned loans worth Rs 3,250 crore to various private companies belonging to the Videocon Industries Limited.
"The board has full confidence and reposes full faith in the bank's MD and CEO Chanda Kochhar", Sharma said on Thursday.
ICICI Bank had issued a press release saying "there is no question of any quid pro quo/nepotism/conflict of interest as is being alleged in various rumours". He had alleged that this was done because of the business relations of Dhoot and Deepak Kochhar. Dhoot and Deepak Kochhar along with other bank officials are likely to be questioned by CBI as part of their probe. According to media reports, the remainder was owned by Dhoot, his family and his associates. We exited investments in NuPower within 20 days in January 2009.
Venugopal Dhoot transferred money from Videocon Group to Supreme Energy, in which he had 90 percent shares. "I think the story started surfacing in 2016 and have continued since then so the board could have appointed an external agency to look into it like Infosys did earlier", said Amit Tandon, co-founder and MD of advisory firm IIAS. Pinnacle Energy was a trust formed by Kochhar family. He promoted it and later transferred it to Deepak Kochhar. "It is important to note here that all banks including ICICI Bank disbursed the rupee term loan into a common escrow pool account which was being maintained for this goal by the lead bank".
While Kochhar was on the committee which sanctioned Rs 3,250 loan to Videocon in 2012, the bank said that Kochhar did not chair the committee which had many independent directors. "The Videocon group account has been classified as an NPA during 2017".
Queries sent to email address on NuPower's website was not answered.
ICICI Bank said the violation was "due to a genuine misunderstanding on the timing of the applicability of RBI's directions in this matter".
The penalty imposed on ICICI Bank is one of the heaviest by a regulator on banks for non-compliance in recent years.
Defending Kochhar, ICICI Bank Chairman MK Sharma said the board does not see this as a conflict of interest in any manner since Videocon Group is not an investor in NuPower renewables, so there was no need to recuse herself from this committee.