ICICI Bank-Videocon case: RBI’s probe two years ago could not
by Admin |12/04/2018
The banking regulator had two years ago examined the complaint against ICICI Bank's loans to Videocon Group but had concluded that no evidence was found of reciprocal benefit.
The Reserve Bank of India (RBI) had said that the allegation against ICICI Bank “could not be conclusively established”
As per the RBI findings, there were some issues but it could not establish “the aspect of quid pro quo allegation of extension of facilities by ICICI to Videocon”.
Since it was first flagged by a whistleblower in October 2016 through a letter to the Prime Minister, RBI, SEBI, CBI and other government entities, RBI has not made public whether it has made any inquiries with ICICI Bank on the sanctioning of loans to Videocon Industries in the last two years.
According to a DNA report, in 2016, when Raghuram Rajan was the governor, RBI had questioned ICICI bank on the criteria it had adopted to disburse loans of Rs 3,250 crore to Videocon Industries as part of the consortium. "Ever since the bank answered all the queries, the regulator did not press for any further enquiries, which may have put to rest the need for further investigation," it said quoting a source.
Supreme Energy, a company owned by Dhoot, later extended a Rs 64-crore convertible loan to NuPower and later Dhoot went on to sell his 99.9 percent stake in Supreme Energy to another director, who in turn sold it to a trust controlled by Kochhar for Rs 99,900.
The RBI findings traced investments into NuPower Renewables, that included an investment of Rs 325 crore through the “automatic route” from Mauritius-based firm First Land Holding into NuPower. Ownership details of this offshore entity, according to RBI’s findings, “could not be traced”, the report said