ICICI Bank moves HC seeking recovery of bonuses from Kochhar

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SME Times News Bureau | 14 Jan, 2020
ICICI Bank has approached the Bombay High Court seeking recovery of bonuses earned by its ousted CEO Chanda Kochhar.

In an affidavit filed by the bank at the high court on Monday, the bank said, "Respondent (ICICI Bank) has filed Suit (L) No. 32 of 2020 at the Court inter alia seeking recovery of amounts towards the clawback of bonuses given to the petitioner from April 2006 to March 2018, pursuant to the termination of the petitioner's (Kochhar) services."

Clawback is an act of retrieving money already paid out. The former CEO is accused of violation of bank's code of conduct and conflict of interest in the controversial Rs 3,250 crore loan given to Videocon Group, a part of which went to a company run by her husband Deepak Kochhar.

The affidavit also observed that Chanda Kochhar is currently being interrogated by several agencies, including the CBI and the Enforcement Directorate (ED), and said that her petition challenging her sacking claiming violation of RBI rules is an malafide attempt to secure stock options of the bank.

In January last year, the Justice Srikrishna Committee indicted her for violation of bank's code of conduct and conflict of interest. It cleared the decks for investigating agencies and overarching regulatory bodies to take appropriate action against all the accused.

The former ICICI Bank chief had moved the Bombay HC challenging the bank's decision to terminate her in November 30, 2019, after the bank approved her request for early retirement.

ICICI Bank's board had also decided to take back all the bonuses and stock options paid to her between April 2009 and March 2018.

In another development, the ED on Friday said that it has provisionally attached Rs 78.15 crore worth movable and immovable assets in possession of Kochhar, her husband Deepak Kochhar and the companies owned and controlled by him.

According to the ED, the asset attachment is under the Prevention of Money Laundering Act 2002 (PMLA) in the ICICI Bank loan case.