Bombay HC Quashes Case Against Chanda Kochhar, 4 ICICI Officials In PMC Octroi Evasion Row; Proceedings To Continue Against Bank

Mumbai, Dec 11: The Bombay High Court has quashed the prosecution and 2009 summons issued to former ICICI Bank chief Chanda Kochhar and four senior bank officials in a case filed by the Pune Municipal Corporation (PMC) alleging octroi evasion on imported gold coins. The case, however, will continue against ICICI Bank.

Court Says Complaint Fails to Attribute Specific Roles to Officials

Justice Neela Gokhale held that the complaint filed by PMC failed to disclose any specific role played by the individual officials and therefore could not support their prosecution.

“A plain reading of the complaint does not demonstrate any role specifically attributed to any of the petitioners,” the court said, adding that “prosecution against the Petitioner Nos. 2 to 5 cannot continue in the absence of any averment ascribing a specific role attributed to them.”

PMC Accused ICICI Bank of Importing Gold Without Paying Octroi

The dispute concerns allegations that ICICI Bank imported gold bullions and coins into PMC limits between April 2006 and August 2009 without paying octroi. PMC calculated outstanding dues of Rs 1.27 crore and, after issuing notices, filed a criminal complaint before the Judicial Magistrate First Class (JMFC), Pune.

On November 20, 2009, the magistrate issued summons to Kochhar, former deputy managing director Nachiket Mor, legal officer Vasudeo Kulkarni and the Bund Garden branch manager Asavari Patankar.

Petitioners Argue Complaint Was Vague and Unsupported by Facts

The petitioners’ advocate, Faisal Ali Sayyed, argued that the complaint was vague and lacked any particulars showing their individual involvement. They submitted that the allegations were “generic and totally indefinite in nature” and that the magistrate issued summons “based on surmises and conjectures”.

PMC Argues Non-Payment Completed the Offence

PMC’s advocate Abhijit Kulkarni countered that the offence was complete once the goods entered city limits without payment of octroi. Its counsel argued that “the declaration of import is required to be made and the payment tendered,” asserting that the complaint was sustainable.

HC Clarifies Companies Can Face Prosecution but Officials Need Specific Allegations

Clarifying the statutory framework, the high court observed that under Section 398 of the Bombay Provincial Municipal Corporation Act (BPMC Act), prosecution can be invoked only if goods liable to octroi are imported, duty is not paid and such non-payment is intentional.

The court further noted that the doctrine of vicarious liability applies only when specific allegations are made against company officials. “It is settled law that when a company is the accused, its directors, managers, secretary, etc., can be roped in only if there is some incriminating role ascribed to them,” the order stated.

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Proceedings Continue Against ICICI Bank

Quashing the proceedings against Kochhar and the four officers, the court left all contentions open for the PMC court as the case proceeds against the bank.

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