ICICI Bank gave loan on merit, says Videocon chief
Videocon Group chairman Venugopal Dhoot has said loans were sanctioned by ICICI Bank based on the merit of projects in the oil and gas sector, as he sought to reject allegations of quid pro quo in loan received from the lender.
His comments come against the backdrop of reports alleging quid pro quo between the group and the bank’s CEO Chanda Kochhar and her family members in giving the loans. Amid the controversy, the lender has come out in defence of Kochhar, saying it has full faith and confidence in her.
It is alleged that a loan of over ₹3,000 crore was given to Videocon Group, which in turn pumped money into NuPower Renewables, a firm owned by Deepak Kochhar, husband of ICICI Bank CEO and managing director Chanda Kochhar.
“When NuPower Renewables started, I invested around ₹2.5 lakh worth shares in NuPower Renewables, but, immediately I sold my entire investment of ₹2.5 lakh worth shares and exited from NuPower Renewables,” Dhoot told PTI.
He also denied reports that his group had invested ₹64 crore in NuPower Renewables. “This is not correct and we deny as we have not invested ₹64 crore in FCD (fully convertible debentures) of NuPower Renewables,” he said and also denied allegations of transferring around ₹325 crore from Mauritius route to Deepak Kochhar’s company. On loans given to Videocon group by the bank, he said, “There was no quid pro quo from ICICI Bank to Videocon as ICICI Bank has under the consortium arrangement (with other lenders and leader bank being SBI) and which is less than 10% loan to Videocon group... “...the sanc-
NEW DELHI:
Under the CBI lens for alleged quid pro quo in receiving a loan from ICICI Bank, Videocon Group chairman Venugopal Dhoot has said he knew all the 12 members of the panel that had cleared the loan amount and asserted that personal ties between two people do not always result in criminal acts.
To a specific question on Chanda Kochhar’s conduct, Dhoot said there was “nothing illegal”. She was only one of the 12 members of the committee which cleared the loan (of ₹3,250 crore) to Videocon Group, he said, claiming that he knew all 12 members, and former bank chairman K V Kamath, the head of the committee, used to have lunch with him.
MUMBAI/NEWDELHI:
tion by the ICICI Bank has been done on the merit of the projects and therefore, there is no question of any quid pro quo.”
Observing that at that time, oil price was above $100 a barrel, Dhoot said, “Videocon was a rated company and all the banks were chasing for investment into Videocon. So, investment by ICICI Bank cannot be construed as a favour to Videocon.”
The group had “huge quality oil and gas assets in Brazil, Mozambique and Indonesia and other domestic good assets, which were appraised by the two lead banks, SBI and IDBI Bank and thereafter ICICI Bank has sanctioned the above loan (₹3,000 crore) to the company”, he added.
Personal ties between two people do not always result in criminal acts, Dhoot said in an interview aired on Marathi television channel ABP Majha. Asked about the preliminary enquiry started by the CBI in this matter, Dhoot said the agency probes every allegation submitted to it, including “bogus complaints”.
“We have not transferred any money...It is very unfair to drag Videocon into the so called allegation or controversy about ICICI Bank dealing with Videocon,” Dhoot said.
On the ₹660-crore loan given to Tuskar Overseas Inc, a group company of Videocon, Dhoot said it was given to the company 12 years ago by the previous management of the bank and was paid back without any default.
He also said Videocon was successful in challenging a show cause notice issued by the Enforcement Directorate to Videocon with regard to the ₹660crore loan and proved that there was no violation of FEMA by the group.