Pradeep Kumar as BBB mem­ber comes under the scan­ner

Financial Chronicle - - FRONT PAGE -

THE fi­nance min­istry will have a fresh look at the new ap­point­ment of Pradeep Kumar (in pic) as Banks Board Bureau (BBB) mem­ber. Kumar, a for­mer man­ag­ing di­rec­tor of SBI, was ad­viser to Avista Ad­vi­sory, a firm run by Ra­jiv Kochhar, brother-in-law of ICICI Bank MD & CEO Chanda Kochhar. Ra­jiv was re­cently quizzed by CBI in the ICICI Bank-Video­con loan con­tro­versy.

Asked if the gov­ern­ment will can­cel the ap­point­ment, a se­nior fi­nance min­istry of­fi­cial said a call will be taken only af­ter look­ing into the se­ri­ous­ness of the case.

Sources said the depart­ment of fi­nan­cial ser­vices (DFS) is ex­am­in­ing the post-re­tire­ment pro­fes­sional as­sis­tance pro­vided by Kumar dur­ing his stint at Avista. Var­i­ous as­pects, such as whether Kumar dis­charged his du­ties at Avista only in an ad­vi­sory role or whether he was also part of the ex­ec­u­tive de­ci­sion-mak­ing process, would be looked into, they added. Af­ter com­plet­ing the de­tailed as­sess­ment, DFS would hand over the re­port to the Ap­point­ments Com­mit­tee of the Cab­i­net (ACC) for its con­sid­er­a­tion, sources said.

CBI has reg­is­tered a pre­lim­i­nary probe, nam­ing Video­con group pro­moter Venu­gopal Dhoot, Ra­jiv's brother Deepak and oth­ers, to de­ter­mine al­leged wrong­do­ing in the sanc­tion­ing of a Rs 3,250 crore loan to the Video­con Group. Among the com­pa­nies that are said to have hired ser­vices of Avista in­clude Video­con, GTL In­fras­truc­ture and Su­zlon for re­struc­tur­ing of their debts. ICICI Bank was a lender to all these en­ti­ties.

The Banks Board Bureau was re­cently re­con­sti­tuted with a new board.

(With PTI in­puts)

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.