Videocon loan row: ICICI Bank boss Chanda Kochhar could be fined up to Rs 25 crore if found guilty, says report

Under the current notice, Securities and Exchange Board of India (SEBI) cannot demand ICICI Bank CEO Chanda Kochhar's resignation. Markets regulator Securities and Exchange Board of India (SEBI) can impose a penalty on ICICI Bank Limited s MD and CEO Chanda Kochhar if its ongoing probe finds that Kochhar and the lender did not abide by fair disclosure norms, according to a report. However, under the current notice, the markets watchdog cannot demand Kochhar's resignation, reported the Mint. SEBI rules state that a maximum penalty of Rs 250000000, or three times the ill-gotten gains, can be levied. But in this case, the quantum of the penalty imposed could be at the discretion of the regulator's adjudicating officer, the report added. On 30 May, ICICI Bank's Board of Directors said they have decided to institute a "comprehensive enquiry" to look into an anonymous whistle blower's complaint alleging that CEO Kochhar had not adhered to provisions relating to the "code of conduct" of the bank. Earier in May, SEBI served a notice to Kochhar on the bank's dealings with the Videocon Group and NuPower Renewables, an entity in which her husband, Deepak Kochhar, has economic interests. The Central Bureau of Investigation (CBI) has initiated a preliminary investigation into the Rs 3,2500000000 ICICI loan extended to Videocon in 2012 and the possible role of Kochhar's husband. Reports have alleged that Videocon chairman Venugopal Dhoot invested Rs 640000000 in NuPower Renewables, a firm owned by Deepak after Videocon secured a loan from a consortium of banks, including ICICI. ICICI has denied any wrongdoing in the loan, saying it was part of a consortium of lenders that extended the facility to Videocon. With inputs from agencies