Mumbai: In a major setback for Chanda Kochhar, the former managing director and chief executive officer of the ICICI bank, the Bombay High Court on Thursday dismissed her petition challenging the bank's decision to sack her. The HC accepted the contention of the ICICI bank that Kochhar's plea was not tenable.
A bench of Justices Nitin Jamdar and Makarand Karnik dismissed her plea as it was not maintainable.
The bench was addressing Kochhar's plea challenging ICICI bank's decision to terminate her services. She had also challenged the bank's action seeking recovery of various amounts towards the claw back of bonuses given to her from 2006 till March 2018.
Under the provision of clawback, an employer takes back the incentive-based pay, like a bonus from an employee for his or her misconduct or declining profits.
In her plea, Kochhar argued that her termination was illegal as the services were terminated in January 2019 while the mandatory "prior" sanction was given by the Reserve Bank of India in March 2019.
To justify its action, the ICICI bank through senior counsel Darius Khambata pointed out that the delay in sanction was because it was awaiting the Justice (retd) Srikrishna report, which was tasked with investigating quid pro quo dealings by Kochhar. It claimed that the sacking was legal as due procedure was followed.
According to the ICICI bank the inquiry report revealed that Kochhar had not fulfilled her contractual duties while serving the bank and she had failed to disclose her personal interests through her husband who was a director of Quality Techno Advisors Private Limited, the firm being probed for illegal transactions along with the Videocon Group. This the affidavit said was against the Code of Conduct and applicable laws, rules and regulations.
The bank, accordingly urged the bench to dismiss the petition as it was not maintainable.
Accordingly, the bench led by Justice Jamdar dismissed the plea.
The top banker - Kochhar was first named in a news report published in March 2018, which detailed her role in the alleged Rs 3,250-crore scam pertaining to a loan granted to Videocon Group by the ICICI Bank. It is alleged that Kochhar was instrumental in sanctioning the loan out-of-turn in 2012 and soon after, at least 10 per cent of the loan amount was invested in Nupower, a company owned by her husband Deepak.
