ICICI Bank, the second-largest private sector bank by assets, on Wednesday, said that the former MD & CEO Chanda Kochhar had violated the code of conduct in connection with the alleged quid pro quo in the loan case of Rs 3,250 crore involving Videocon Chairman Venugopal Dhoot, Chanda Kochhar’s husband Deepak Kochhar. The enquiry led by Justice B. N. Srikrishna has also found lack of diligence to annual disclosures as required by ICICI Bank.
“The Enquiry Report, with the scope period of April 1, 2009 to March 31, 2018 (unless specific information required enquiry into transactions or facts of an earlier period), concluded, primarily on account of ineffectively dealing with conflict of interest and due disclosure or recusal requirements, that Ms Chanda Kochhar was in violation of the ICICI Bank Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations,” ICICI Bank said in a statement.
The board of directors of ICICI Bank have decided to treat the separation of Ms Chanda Kochhar from the bank as a ‘Termination for Cause’ under the bank’s internal policies, schemes and the Code of Conduct, with all attendant consequences (including revocation of all her existing and future entitlements such as any unpaid amounts, unpaid bonuses or increments, unvested and vested & unexercised stock options, and medical benefits), and require the clawback of all bonuses paid from April 2009 until March 2018, and to take such further actions as may be warranted in the matter, ICICI Bank said in a regulatory filing.
“The Enquiry Report also concluded that her lack of diligence with respect to annual disclosures as required by the Bank in terms of its internal policies, the ICICI Bank Code of Conduct and applicable Indian laws, rules and regulations on her interests (direct or indirect) towards avoidance of conflict of interest, when considered that the Bank’s processes were dependent solely on the directors discharging their fiduciary duty to recuse themselves and avoid conflict, implies that the Bank’s processes were rendered ineffective by her approach to such disclosures and avoidance of conflict,” ICICI Bank said further.
The Board of Directors of ICICI Bank on May 29, 2018, the Audit Committee of the bank had on June 6, 2018, appointed former Supreme Court judge, Hon’ble Justice (Retd.) B. N. Srikrishna as the Head of Enquiry (HOE) to undertake a comprehensive enquiry on allegations against Ms Chanda Kochhar. The HOE was assisted by a law firm and a forensic and investigative services firm for the conduct of the enquiry.
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