Insta
CEO and MD of ICICI bank Chanda Kochhar (Abhijit Bhatlekar/Mint via Getty Images)
Former managing director and chief executive officer of ICICI Bank Chanda Kochhar allegedly misled the Reserve Bank of India (RBI) regarding a $365 million loan it gave to Essar Steel Minnesota LLC in 2014, reports The Indian Express.
As far back as July 2014, the central bank had asked questions about ICICI Bank approving a capacity increase for Essar Steel Minnesota’s manufacturing steel pellets project, from 4.1 metric tonnes per annum to 7 metric tonnes per annum.
RBI asserted that the approval meant an ‘ever-greening’ of the loan since a second loan was being disbursed in order to pay off the first loan. It also advised ICICI Bank to classify Essar Steel Minnesota’s debt as a ‘sub-standard asset’.
On its part, ICICI Bank claimed that even though it had green-lighted the capacity increase, it had not forwarded any additional funding to Essar Steel Minnesota.
Records show that this was, however, incorrect, as in June 2014 the bank had, in fact, disbursed a $365-million foreign currency term loan to Essar Steel Mauritius; the money was then used to pay Essar Projects for invoices issued by Essar Steel Minnesota.
Kochhar participated in the credit committee meeting which forwarded the loan. The Essar Group has been one of the largest borrowers of ICICI Bank and received 71 loans from April 2009 to March 2018.
Investigators assert that Kochhar did not meet her fiduciary duty under the Companies Act 2013.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest