Bombay High Court Declares Kochhars’ Arrest in ICICI-Videocon Case Illegal, Cites Abuse of Power

The Bombay High Court has declared the arrest of former ICICI Bank MD and CEO Chanda Kochhar and her husband Deepak Kochhar by the Central Bureau of Investigation (CBI) in the ICICI-Videocon loan fraud case as illegal, criticizing the move as “without application of mind and due regard to the law,” and amounting to an “abuse of power.” Justices Anuja Prabhudessai and N R Borkar, in their ruling on February 6, confirmed an earlier January 2023 interim order that granted bail to the Kochhars, highlighting the CBI’s failure to demonstrate any supportive circumstances or material justifying the arrests.

The court criticized the CBI for its contention that the arrests were made due to the Kochhars’ non-cooperation with the investigation, emphasizing the accused’s constitutional right to remain silent. It also pointed out the procedural lapses in the arrest process, including the inappropriate use of section 41A of the Criminal Procedure Code, which is intended to prevent routine arrests and mandates that arrest shall only be made when necessary after issuing a notice for interrogation.

The high court’s decision also sheds light on the prolonged duration before summoning the Kochhars for questioning, noting that despite the registration of the FIR in 2019, they were only summoned in 2022. The case revolves around allegations of ICICI Bank sanctioning credit facilities of Rs 3,250 crore to Videocon Group companies in violation of banking norms, with the CBI alleging a quid pro quo involving investments in Nupower Renewables, managed by Deepak Kochhar. The ruling has significant implications for the investigation and the broader issues of arrest protocols and the rights of the accused in legal processes.

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