Flagrant violation of ethics, failure to disclose conflict of interest and the irreparable loss to the reputation of the bank were the major reasons for its terminating the services of Chanda Kochhar, the ICICI Bank told the Bombay High Court on Monday.
Further, the bank told Bombay High Court that Kochhar could not be given any bonuses she had been awarded earlier and has accordingly, sought back the said amounts.
Pursuant to earlier orders, the ICICI bank filed its affidavit, justifying Kocchar's termination was legal and within the powers of the bank. “Kochhar's termination has to be treated as the one for a cause by the board of directors, on account of her indulging in flagrant violation of the bank's code of business conduct and ethic, the framework for dealing with conflict of interest and her fiduciary duties,” the affidavit reads.
“Kochhar was required to disclose annually a statement that she had no material interest in any person, who is a party to a contract with the ICICI group of companies. She was required to act in accordance with high professional and ethical standards and to be committed to integrity in all aspects of their activities and conduct their duties,” affidavit read.
“She acted in breach of the rules by having a private pecuniary interest. Her conduct has caused substantial embarrassment for the bank and all stakeholders, including the employees, leading to an irreparable reputational loss. And despite being aware of the rules and policies, Kochhar deliberately committed violations with a malafide intention to obtain illegal benefits,” the affidavit adds.