Videocon loan row: ICICI Bank responds to SEBI's show cause notice, says it was unaware of alleged conflict of interest
ICICI Bank, which sent its reply to SEBI last week, reportedly elaborated the process involving the disbursement of Rs 32.5 billion loan to Videocon group ICICI Bank has denied charges of violation of disclosure norms with respect to the Videocon loan issue. In a reply to market regulator Securities Exchange Board of India's (SEBI) show-cause notice issued in May with respect to the alleged violation of disclosure norms, ICICI Bank has said that it was not aware of the alleged conflict of interest situation and hence couldn’t make any disclosures, a media report said. The lender, which sent its reply to SEBI last week, reportedly elaborated the process involving the disbursement of Rs 32500000000 loan to Videocon group, Business Standard reported. In June, a preliminary examination by regulator SEBI favoured adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of listing disclosure norms regarding 'conflict of interest' in business dealings of her husband with the Videocon group. Besides the SEBI probe, ICICI Bank's board also constituted an "independent enquiry". Kochhar is on leave till completion of this enquiry. The Central Bureau of Investigation (CBI) also initiated a preliminary investigation into the Rs 3,2500000000 ICICI loan extended to Videocon in 2012 and the possible role of Kochhar's husband -- Deepak. The bank has maintained that its board has full faith in Kocchar. According to regulatory sources, SEBI's preliminary examination findings were based on enquiries made by the regulator in the matter involving Kochchar, ICICI Bank and Videocon Group. As per the report, Kochhar admitted that her husband Deepak has had many dealings with Videocon group over the last several years. Besides, it had also been admitted by her that Deepak Kocchar and Venugopal Dhoot were co-founder and promoters of NuPower. Further, in June 2009, shares of Dhoot and Pacific Capital (owned by Deepak Kocchar's father and sister-in-law) in NuPower were sold to Supreme Energy. Also, Dhoot continues to hold an interest in NuPower through debentures of Rs 640000000, subscribed through Supreme Energy, the regulator found. Association of Deepak Kocchar and Videocon has also been confirmed in the case of Credential Finance. On the basis of the preliminary report, Sebi has concluded that there was a conflict of interest in the transactions of ICICI Bank with Videocon. With inputs from PTI