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    Icici Bank Loan Fraud Case

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    RAFIAHAMMED

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    Icici Bank Loan Fraud Case

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    RAFIAHAMMED
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    24 views5 pages

    Icici Bank Loan Fraud Case

    Uploaded by

    RAFIAHAMMED

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    ICICI BANK LOAN FRAUD

    CASE
     Miss Chanda Kochar, former Managing Director (MD) of ICICI
    Bank.
     Deepak Kochar, husband of Miss Chanda Kochar.
     Rajeev Kochar, Bother in law of Miss Chanda Kochar.
     Venugopal Dhoot, Videocon Chief.

     Arvind Gupta, Whistleblower of the fraud case.(He written a letter


    to the Prime Minister Office (PMO) somewhere in the year 2018).
     Loan amount : Rs 600 Crore ( approx figure)
     Quid pro quo transaction : Between ICICI Bank (headed by Miss Chanda
    Kochar) and Venugopal Dhoot.
    Quid pro quo is Latin term for "something for something" that originated
    in the middle ages in Europe. It describes a situation when two parties
    engage in a mutual agreement to exchange goods or services reciprocally.
    In a quid pro quo agreement, one transfer is thus contingent upon some
    transfer from the other party.
     Allegations: Venugopal Dhoot transferred the ownership of NuPower
    Renewables to Deepak Kochar, the husband of Chanda Kochar for Rs 64
    Crore.
     As per the Supreme Court Judgment, the bank employees (whether
    public or private) are “Public Servant” within the meaning of
    Prevention of Corruption Act, 1988.
     Arvind Gupta further alleges that the same modus operandi was
    adopted by Chanda Kochar in granting loans on quid pro quo basis as a
    result of which ICICI Bank suffered huge losses
     What measures needs to be taken?
     When investors and flat owners lost their hard-earned money to bad builders, Bombay
    High Court directed the police department to treat such cases as criminal and register
    the complaints against the builders in question.
     The same principle should be applied when equity investors lose money due to bad
    corporate governance.
     To this end, like the Real Estate (Regulation and Development) Act (RERA), 2016, a
    separate act and regulations are required to protect equity capital investors in the stock
    market.
     Thus the policy must address the issues like Nepotism, favouritism, conflict-of-interest,
    quid pro quo, transparency, Lack of accountability.
     What are the shortfalls with corporate governance in India?
     Corporate governance is one of the most important differentiators of business
    that is distilled from an organisation’s culture, its policies and ethics, especially
    of the people running the business, and the way it deals with various
    stakeholders.
     While significant steps have been taken by the regulatory authorities in India to
    enhance corporate governance, the stakeholders are not protected from poor
    corporate governance.
     As soon as common investors and the public come to know about the shady
    dealings of management, thousands of crores of net worth is battered by a loss
    of market capitalisation over a few months.
     There is no mechanism to compensate the stakeholders for their loss in equity
    market due to gruesome corporate governance.

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