Appellate Tribunal upholds ED’s attachment of Chanda Kochhar’s assets

The Appellate Tribunal under the Prevention of Money Laundering Act has found a “prima facie case” in the matter allegedly involving the former Chief Executive Officer of ICICI Bank Chanda Kochhar and others.

In a recent order partially confirming the Enforcement Directorate’s asset attachment, while hearing the agency’s appeal against an order of the Adjudicating Authority, the Appellate Tribunal observed: “It may be true that the issue will be determined by the trial court but we find a prima facie case against the respondents for commission of the offence of money laundering and, therefore, the provisional attachment order is justified.”

After considering the submissions of both the sides, the Tribunal said: “…we cause interference in the impugned order passed by the Adjudicating Authority other than for attachment of ₹10.50 lakhs not confirmed by the Adjudicating Authority. It is accordingly set aside other than for a sum of ₹10.5 lakhs attached by the appellant. The Provisional Attachment Order dated 10.01.2020 for the properties other than for ₹10.5 lakhs is confirmed”.

The ED had challenged the order dated November 6, 2020, passed by the Adjudicating Authority. Its case is based on a first information report registered by the Central Bureau of Investigation on January 22, 2019.

As noted in the order, the allegation against the accused was about the criminal conspiracy, cheating, illegal gratification, criminal misconduct and abuse of official position by the public servant. It was for sanction of loan to Videocon Group of Companies in contravention of the Rules and policies of the ICICI Bank.

The loan granted to the Videocon Group of Companies for a sum of ₹1,730 crores turned Non-Performing Assets (NPA) and resulted in wrongful loss to the ICICI Bank and purported wrongful gain to the borrowers and the accused persons.