In 2012, ICICI Bank sanctioned a ₹300 crore loan to Videocon Group as part of a ₹3,250 crore total exposure, allegedly influenced by Chanda Kochhar
This was done to benefit her husband’s company, NuPower Renewables, in exchange for financial favors from Videocon’s chairman.
The ₹300 crore loan was part of a larger ₹40,000 crore syndicated loan involving 20 banks, led by SBI. Following whistleblower revelations and investigations by the CBI and ED, Chanda Kochhar was removed from ICICI Bank. Ask ChatGPT
In a major shock to India’s banking world, Chanda Kochhar, the former CEO and Managing Director of ICICI Bank, has been found guilty in a major loan fraud case linked to the Videocon Group, a consumer electronics and oil exploration company owned by Venugopal Dhoot. The scam came to light after a whistle-blower raised concerns, revealing how personal gain, conflict of interest, and weak corporate governance led to one of the most damaging financial scandals in India.
India has witnessed many banking crises before, but few have been as serious or far-reaching as this one. Chanda Kochhar, once celebrated as a powerful and honest woman in banking, now faces criminal charges. Her story has become a cautionary tale of what happens when personal interests are mixed with professional responsibilities.
The ICICI Bank–Videocon Scam
In 2012, ICICI Bank sanctioned a ₹300 crore loan to the Videocon Group. The loan was approved by a credit committee that included then-CEO and MD Chanda Kochhar. The Central Bureau of Investigation (CBI) later alleged that this loan was part of a quid pro quo arrangement. Kochhar’s husband, Deepak Kochhar, allegedly received financial benefits through investments in his company, NuPower Renewables Pvt. Ltd., from Videocon chairman Venugopal Dhoot.
This ₹300 crore loan was part of ICICI Bank’s total ₹3,250 crore exposure to the Videocon Group. The CBI claimed that the loan approvals violated ICICI Bank’s internal credit policies, the Banking Regulation Act, and Reserve Bank of India (RBI) norms. The ₹3,250 crore later turned into a non-performing asset (NPA), causing major financial losses to ICICI Bank.
Furthermore, the ₹300 crore loan was part of a much larger ₹40,000 crore syndicated loan extended to Videocon by a consortium of 20 banks led by the State Bank of India (SBI). ICICI Bank was one of the key lenders in this consortium. The entire loan arrangement eventually faced repayment issues, with a substantial portion becoming bad debt.
Scandal Unfolds
The scandal remained under wraps until 2016, when whistle-blower Dr. Arvind Gupta flagged the suspicious transactions. He alleged that the loan disbursal involved a quid pro quo arrangement benefiting Kochhar’s family. Specifically, he claimed that Venugopal Dhoot routed ₹64 crore to NuPower Renewables Pvt. Ltd. (NRPL), a company run by Chanda Kochhar’s husband, Deepak Kochhar.
The alleged financial trail revealed that after the loan was sanctioned, Dhoot invested the amount through his company, Supreme Energy Pvt. Ltd., in NuPower Renewables. He later exited by transferring control to Deepak Kochhar. Though this transaction appeared to be a legitimate investment, authorities later found it to be part of a well-planned quid pro quo scheme that benefited the Kochhar family.
The case highlighted serious gaps in internal controls and regulatory oversight. ICICI Bank's risk assessment process seemingly ignored Videocon’s poor credit record. Regulatory bodies like the RBI and the Securities and Exchange Board of India (SEBI) were criticized for failing to identify the conflict of interest in time.
Under growing pressure, Chanda Kochhar stepped down as CEO in 2018, taking early retirement. Following an internal probe ordered by the ICICI Bank board, she was formally terminated and stripped of all retirement benefits.
In 2020, the Enforcement Directorate (ED) attached assets worth ₹78 crore belonging to the Kochhars. Deepak Kochhar was arrested in September 2020. In December 2022, both Chanda and Deepak Kochhar were arrested by the CBI on charges of corruption, cheating, and money laundering.
In early 2023, the Bombay High Court granted interim bail to the Kochhars. However, in July 2025, an appellate tribunal under the Prevention of Money Laundering Act (PMLA) found Chanda Kochhar guilty of accepting a ₹64 crore bribe for facilitating the Videocon loan. The tribunal reversed an earlier clean chit given by the PMLA Adjudicating Authority and upheld the ED’s findings, calling the transaction a “textbook case” of quid pro quo and money laundering.
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Chanda Kochhar: From Trailblazer to Tainted Titan
Before the scandal overshadowed her career, Chanda Kochhar was regarded as a trailblazer in Indian banking. She began her journey with ICICI in 1984 as a management trainee and climbed the corporate ladder with remarkable speed. By 2009, she became the first woman to head a major private sector bank in India, taking over as CEO and MD of ICICI Bank.
Under her leadership, ICICI Bank expanded its footprint aggressively in retail banking, adopted new-age technologies, and extended banking services to rural and underserved populations. Kochhar was widely credited with transforming the landscape of Indian banking, especially in making retail and digital banking more accessible.
In 2011, she was awarded the Padma Bhushan, the country’s third-highest civilian honour, for her contributions to banking and finance. Her global influence was recognized in 2015 when she was featured in Time magazine’s list of the 100 Most Influential People in the World and ranked 36th on Forbes' list of the World's 100 Most Powerful Women. Earlier, in 2014, Fortune India had named her the second most powerful woman in business. That same year, Carleton University in Canada conferred upon her an honorary Doctor of Laws degree, praising her leadership and ethical contributions to the financial sector—accolades that would later be overshadowed by controversy. She was also seen as a role model for working women, frequently quoted for her motivational stance on overcoming challenges.
The ICICI Bank-Videocon scam serves as a powerful reminder that no individual, no matter how celebrated, is above the law. Chanda Kochhar’s downfall underscores the urgent need for stronger corporate governance, transparency, and accountability in India’s financial sector. Her journey from a respected banking icon to a convicted figure highlights how personal interests can compromise professional integrity. This case has forced regulators and institutions to re-evaluate their ethical standards and internal controls, with the hope that such breaches of trust will not be repeated. [Rh/VP]