'Abuse of power': Bombay HC slams CBI on 'illegal' arrest of Chanda Kochhar and Deepak Kochhar

Updated : Feb 19, 2024 17:55
|
Editorji News Desk

The Bombay High Court has strongly criticised the Central Bureau of Investigation (CBI) for the arrest of former ICICI Bank chief Chanda Kochhar and her husband Deepak Kochhar in an order that was made available on February 19th . The High Court, while terming the arrest 'illegal', went on to call the course of action, an "abuse of power" 

The division bench of Justices Anuja Parbhudessai and NR Borkar observed: “Such routine arrest without application of mind and due regard to the law amounts to an abuse of power and does not satisfy the requirement of Section 41A(3) CrPC.”

Bail for Kochhars upheld

The division bench on February 6 had held the Kochhars' arrest as illegal and confirmed the bail given to the duo in January 2023 by another bench's interim order.

Also Read: Interim relief for Chanda Kochhar, husband: Bombay HC grants bail, says CBI arrest not as per law

The CBI had contended that Chanda and Deepak Kochhar did not cooperate with the interrogation leading to the arrest. Meanwhile, the Bombay HC dismissed the agency's contention on the basis that the accused "had a right to remain silent during interrogation".

Court slams CBI

The couple was arrested by the CBI on December 23, 2022, in connection with the Videocon-ICICI Bank loan case.

They immediately moved the HC challenging their arrest and sought it to be declared as illegal. By way of an interim order, they also sought to be released on bail.

On January 9, 2023, the HC, in its interim order, granted bail to the duo after coming down heavily on the CBI for making the arrest in a "casual and mechanical" manner and without application of mind.

The bench noted that section 41A of the Criminal Procedure Code (CrPC) was introduced to avoid routine arrests. This section limits the power to arrest when the accused complies with the notice to appear for questioning. It also mandates that arrests can only be made when the police are absolutely sure.

The agency was within its power to question the accused, but its actions were not "wholly immune from judicial reviewability", the court noted. "The court can consider whether the reasons for deprivation of liberty are rational, reasonable or fanciful," it added.

Videocon Loan case

Apart from the Kochhars, the CBI had also arrested Videocon group founder Venugopal Dhoot in the case. He, too, was granted bail by the HC in January 2023 in its interim order.

The central agency has alleged that ICICI Bank had sanctioned credit facilities to the tune of Rs 3,250 crore to Videocon Group companies promoted by Dhoot in violation of the Banking Regulation Act, Reserve Bank of India guidelines and credit policy of the private sector lender.

The CBI had named Chanda Kochhar, Deepak Kochhar as well as Dhoot along with Nupower Renewables (NRL), managed by Deepak Kochhar, Supreme Energy, Videocon International Electronics Ltd and Videocon Industries Ltd as accused in the FIR registered in 2019 under Indian Penal Code sections related to criminal conspiracy and provisions of the Prevention of Corruption Act.

The central agency has alleged that ICICI Bank, when it was headed by Chanda Kochhar, sanctioned credit facilities to the tune of Rs 3,250 crore to these companies in violation of norms.

It further alleged that as a part of quid pro quo (a favour granted in return for something), Dhoot made an investment of Rs 64 crore in Nupower Renewables through Supreme Energy Pvt Ltd (SEPL), and transferred SEPL to Pinnacle Energy Trust managed by Deepak Kochhar through a circuitous route between 2010 and 2012

 

Chanda Kochhar

Recommended For You

editorji | Business

India's electric vehicle market to reach Rs 20 lakh crore by 2030, says Nitin Gadkari

editorji | Business

Mallya Calls for Justice Over Excess Debt Recovery and Legal Inconsistencies

editorji | World

UK PM Keir Starmer hosts Indian business chiefs to boost investments

editorji | Business

Bangladesh Government Plans to Renegotiate Power Deal with Adani Power, Citing Unfair Terms

editorji | World

New Zealand falls into recession with abrupt economic slowdown