Arrest of Chanda Kochhar, her husband Deepak in loan fraud case amounted to abuse of power by CBI: Bombay HC
Mumbai, Feb 19, 2024
The Bombay high court has ruled that the arrest of ICICI Bank's former managing director and chief executive officer (CEO) Chanda Kochhar and her husband Deepak Kochhar by the Central Bureau of Investigation (CBI) in connection with a loan fraud case was "without application of mind and due regard to the law," amounting to an "abuse of power."
A division bench of Justices Anuja Prabhudessai and N R Borkar, in an order made available on Monday, stated that the CBI failed to demonstrate the existence of circumstances or supportive material justifying the decision to arrest.
The court emphasized that the absence of such circumstances renders the arrest illegal.
The court also rejected the CBI's argument that the arrest was made due to the Kochhars' non-cooperation with the probe, asserting that the right to silence, protected by Article 20(3) of the Indian Constitution, cannot be equated with non-cooperation.
The arrest of the Kochhars took place on December 23, 2022, in connection with the Videocon-ICICI Bank loan case. The couple promptly challenged the arrest in the high court, seeking its declaration as illegal and requesting bail. On January 9, 2023, the court, in an interim order, granted bail to the Kochhars, noting the casual and mechanical nature of the CBI's arrest.
The court's February 6 order highlighted the introduction of Section 41A of the Criminal Procedure Code (CrPC) to prevent routine arrests. It emphasized that arrests should only occur when the police deem it necessary, and compliance with police notices should be considered before any such action.
While acknowledging the investigating agency's right to interrogate, the court emphasized that it is not wholly immune from judicial reviewability. It questioned the delay in summoning the Kochhars for questioning, despite the FIR being registered in 2019.
The CBI alleged that ICICI Bank sanctioned credit facilities of Rs 3,250 crore to Videocon Group companies, violating regulations. The FIR named the Kochhars, Videocon group founder Venugopal Dhoot, and others, accusing them of criminal conspiracy and corruption.
The high court's decision brings relief to the Kochhars, marking a significant development in the high-profile case that has been under scrutiny since 2019.
[The Times of India]
