Abuse of power: Bombay High Court on Chanda Kochhars’ arrest by CBI
Mumbai, February 19
Right to remain silent cannot be equated with non-cooperation, ruled the Bombay High Court while terming the arrest of the Kochhar couple by the CBI in the ICICI loan fraud case as “abuse of power” lacking proper legal consideration.
Not summoned for 3 years after FIR
Petitioners (Kochhars) were not interrogated or summoned for over three years from the date of FIR… Such routine arrest without application of mind amounts to abuse of power.— Bombay HC
Making the judgment of February 6 public on Monday on granting regular bail to the ICICI Bank’s former Managing Director and Chief Executive Officer (CEO) Chanda Kochhar and her husband Deepak Kochhar, a Division Bench of the high court criticised the CBI for its failure to provide substantial evidence for the arrest.
The Bench comprising Justices Anuja Prabhudessai (since retired) and NR Borkar highlighted that the FIR against the Kochhars was registered in 2019 and that they were summoned for questioning only in 2022.
“Despite the gravity of the offence, the petitioners (Kochhars) were not interrogated or summoned for over three years from the date of registration of the crime,” it said.
In a detailed 32-page judgment, the bench highlighted that the arrests were made without due regard for the law, signalling an abuse of power.
“Such routine arrest without application of mind and due regard to the law amounts to an abuse of power,” the court said, and emphasised that the right to silence, as per Article 20(3) of the Constitution, protected individuals from self-incrimination and “should not be misconstrued as non-cooperation”. The Kochhars were arrested by the CBI on December 23, 2022, in connection with the Videocon-ICICI Bank loan case. They promptly challenged the arrest in the high court, asserting its illegality and seeking bail.
The court’s decision on February 6 deemed the arrests unlawful, affirming an earlier interim bail granted in January 2023. The Bench pointed out that routine arrests without proper legal considerations contradicted the essence of justice.
The CBI’s allegations against the Kochhars and others involved the sanctioning of credit facilities in violation of banking regulations and policies. In addition to the Kochhars, the CBI had also arrested Venugopal Dhoot, the founder of the Videocon group, in the same case. The high court granted him bail in January 2023.
The case revolves around allegations of financial impropriety, with claims that ICICI Bank extended significant credit to Videocon Group companies, violating banking regulations and engaging in corrupt practices.
The agency has alleged ICICI Bank sanctioned credit facilities to the tune of Rs 3,250 crore to these companies in violation of norms. It further claimed as a part of quid pro quo, 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.
