Deepak Kochhar: From Prominent Business Executive to Alleged Money Lender
Deepak Kochhar: From Prominent Business Executive to Alleged Money Lender
Deepak Kochhar, born on May 10, 1965, and a prominent figure in India's corporate world, fell from grace after being accused of money laundering and engaging in corrupt practices with the Videocon Group. This article delves into his career, his relationship with Chanda Kochhar, and the reasons behind his arrest.
Who Is Deepak Kochhar?
Deepak Kochhar is a well-known Indian business executive, born into a naval officer family and raised in the corporate society of Mumbai. He belongs to the Hindu religion and is one of India's celebrated business families. After completing his graduation from Mumbai University, Kochhar pursued his Masters in Finance from Jamnalal Bajaj Institute of Management Studies, where he met Chanda Advani, who later became Chanda Kochhar, his wife.
Their journey together began when Chanda decided to join erstwhile ICICI in 1984, while Deepak started his own venture, Credential Finance, with his brother Rajiv Kochhar in 2006. However, the company ran into tax-related litigations, and Credential Finance was struck off the stock exchange registers in the early 2000s. In 2008, Kochhar partnered with his brother to establish Avista Advisory Group in Singapore, with offices in India.
Why Was He Arrested?
On September 7, 2020, Deepak Kochhar was arrested by the Enforcement Directorate (ED) in India on allegations of money laundering in a deal between former ICICI Bank CEO Chanda Kochhar and the Videocon Group. Here are key details about the alleged crimes and the investigation.
Investigation and Arrests: The probe agency filed a case under the Prevention of Money Laundering Act (PMLA) early last year against Deepak Kochhar, Chanda Kochhar, and Venugopal Dhoot from the Videocon Group. The case was triggered by a complaint registered by the Central Bureau of Investigation (CBI), which is independently investigating the allegations. The ED is also probing at least two other instances of loans sanctioned by ICICI Bank during Chanda Kochhar's tenure. These loans were made to Gujarat-based pharmaceutical firm Sterling Biotech and to Bhushan Steel Group, both of which are also being probed on alleged money laundering charges.
Details of the Alleged Scheme: According to the CBI, Mr. Dhoot invested in NuPower Renewables (a company controlled by Deepak Kochhar) through another company named Supreme Energy, in a quid pro quo deal via loans cleared by ICICI Bank after Chanda Kochhar took over as CEO in May 2009. The CBI found that six loans worth RS 1875 crore were sanctioned between June 2009 and October 2011, in alleged violation of established policies. These loans were declared non-performing assets in 2012, causing a loss of RS 1730 crore to the bank. This scheme is believed to have been part of a larger corrupt practice aimed at inflating lending to gain personal, financial benefits.
Repercussions and Recoveries
ICICI Bank's petition to recover bonuses given to Chanda Kochhar was also a part of the legal action taken against the executives. The bank has sought accountability for these payments, which were claimed to be irregular.
The Family Legacy: Despite the scandal, the Kochhar family still holds a prominent position among India's celebrated families. They are often recognized for their star-studded social events and have close ties with influential figures in Indian society, including Mukesh and Nita Ambani, Gautam Adani, and others. Their daughter Aarti's wedding in December 2014 saw a guest list that included numerous influential business and political leaders, further highlighting their standing in the Indian elite.
Conclusion: The arrest of Deepak Kochhar marks a significant shift in the profile of one of India's most influential business families. As the investigation continues, it remains to be seen how this will affect the Kochhar family's future in the business world and their standing among the social elite in India.