Appellate Tribunal Upholds ED's Seizure of Chanda Kochhar's Assets in Loan Scandal
The Appellate Tribunal under SAFEMA has reversed a previous ruling, allowing the Enforcement Directorate to confiscate Chanda Kochhar's properties, including a prime flat in Mumbai, labeling them as 'proceeds of crime.'
Chanda KochharIcici BankVideocon GroupLoan ScandalEdReal Estate MumbaiJul 20, 2025
This decision reverses a previous ruling, enabling the ED to confiscate Kochhar’s properties, including a prime flat in Churchgate, Mumbai, labeling them as “proceeds of crime.” The flat was discovered to have been transferred through a network of Videocon-related companies to Kochhar’s family trust at an undervalued price of Rs 11 lakh.
Kochhar was found guilty of approving loans while hiding a serious conflict of interest, and the Tribunal criticised her for gross misconduct. Of the seized assets, only Rs 10.5 lakh in cash was returned to Kochhar after she provided records tracing its origin.
The Central Bureau of Investigation (CBI) had filed an extensive chargesheet of over 11,000 pages. Kochhar, her husband Deepak, and V N Dhoot, the promoter of Videocon Group, are among those mentioned in the chargesheet. The case primarily focuses on accusations of cheating and misconduct related to the sanctioning of loans to companies associated with the Videocon Group.
CBI alleges that Chanda Kochhar and others conspired to approve credit facilities for Videocon Group companies. In August 2009, a committee led by Kochhar sanctioned a Rs 300 crore term loan to Videocon International Electronics Limited. The loan was disbursed through a complex network involving multiple Videocon entities, and Rs 64 crore was transferred to Deepak Kochhar’s NuPower Renewable Limited as an investment.
In a case registered in January 2019, CBI alleged that Chanda Kochhar, during her tenure as MD and CEO of the bank, approved loans of Rs 1,875 crore to six firms. Later, the loan amount was restructured to Rs 1,730 crore, with a balance of Rs 1,033 crore remaining. Notably, two loans of Rs 300 crore and Rs 750 crore were granted to Videocon International Electronics and Videocon Industries.
The decision by the Appellate Tribunal is a significant blow to Kochhar’s legal defense and highlights the gravity of the allegations against her. The case has been closely followed by financial and legal experts, and this ruling is expected to have broader implications for corporate governance and accountability in the banking sector.
Frequently Asked Questions
What did the Appellate Tribunal decide regarding Chanda Kochhar's assets?
The Appellate Tribunal under SAFEMA upheld the Enforcement Directorate’s decision to seize Chanda Kochhar's assets, including a prime flat in Mumbai, labeling them as 'proceeds of crime.'
What was the amount of the illicit payment connected to the loan to Videocon?
The illicit payment connected to the Rs 300 crore loan to Videocon was Rs 64 crore.
Why were Chanda Kochhar's assets labeled as 'proceeds of crime'?
Chanda Kochhar's assets were labeled as 'proceeds of crime' because she was found guilty of approving loans while hiding a serious conflict of interest, and the Tribunal criticized her for gross misconduct.
What was the total loan amount approved by Chanda Kochhar to Videocon Group companies?
Chanda Kochhar approved loans totaling Rs 1,875 crore to six firms associated with the Videocon Group.
What significant loans were granted to Videocon International Electronics and Videocon Industries?
Two significant loans of Rs 300 crore and Rs 750 crore were granted to Videocon International Electronics and Videocon Industries, respectively.
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