Latest news with #SmugglersandForeignExchangeManipulators(ForfeitureofProperty)Act
Indian Express
22-07-2025
- Business
- Indian Express
Rs 64-crore bribe, Churchgate flat ownership: Tribunal upholds ED's money laundering charge against Kochhars
An appellate tribunal has upheld a 2020 Enforcement Directorate (ED) order against former ICICI Bank CEO and MD Chanda Kochhar and her husband for giving loan to the Videocon group, observing a 'prima facie' case of money laundering that involved a flat in Mumbai's Churchgate and a Rs 64 crore bribe, which was used to acquire wind power farms. In its July 3 order, the tribunal said it found 'substance' in the ED's allegation of a quid pro quo arrangement linked to a Rs 300 crore loan sanctioned by ICICI Bank to Videocon Group of Companies in August 2009, just three months after Kochhar became its chief executive. The Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) also said that both the transactions involving the property and the Rs 64 crore bribe amounted to 'proceeds of crime' and hence, ordered the attachment of the property, going against the earlier ruling of the Adjudicating Authority. Back in 2020, the ED had provisionally attached Flat No. 45 at CCI Chambers in Churchgate, the wind assets, and Rs 10.5 lakh in cash under the Prevention of Money Laundering Act (PMLA). However, the Adjudicating Authority had refused to confirm the attachment in November that year, prompting the ED's appeal to the tribunal – which has now ruled in its favour. The Rs 300 crore loan was sanctioned by ICICI Bank to Videocon International Electronics Ltd (VIEL), part of the Videocon Group. The loan was disbursed on September 8, 2009, and on the following day, VIEL transferred an amount of Rs 64 crore to NuPower Renewables Pvt Ltd (NRPL), a firm linked to Deepak Kochhar, Chanda Kochhar's husband. 'The amount of Rs.64 crores came to M/s NRPL was used for the benefit of Mr. Deepak Kochhar… (It) was utilized towards purchase of Wind Farm projects of 33.15 MW capacity while Mr. Deepak Kochhar was the Managing Director of the Company,' the appellate authority said in its order. The tribunal rejected Chanda Kochhar's claim that the loan to Videocon was sanctioned by a committee, not her, and thus she had no link to the Rs 64 crore transfer from the group to a company managed by her husband. While the Kochhars have argued that the Churchgate flat has belonged to them since 1995, the appellate tribunal order said 'facts on record gives a different picture'. While Deepak Kochhar and his brother initially purchased the flat, it was handed over to a Videocon Group entity in April 2009 to settle a loan, as it had been mortgaged. In 2016, the flat was transferred to a family trust of Deepak Kochhar for a consideration of Rs 11 lakh, it said. 'When the value of the Flat was Rs 5.25 Crores in the year 1995, the appreciated value must be many times in the year 2016. The Videocon Group of Industries alleged to have passed on benefit to the respondents and since the respondents have failed to justify the transaction at the meagre amount, the appellants have rightly taken it to be nothing but the proceeds of crime and accordingly attached the property,' the July 3 order said. The order also noted that the Kochhars had been associated with Videocon Group's promoter V N Dhoot since 1994-95. It also highlights Dhoot's links with multiple entities under the scanner, including NRPL, which he incorporated with Deepak Kochhar in 2008. 'It may be true that the issue will be determined by the Trial Court but we find a prima facie case against the respondents for commission of the offence of money laundering and, therefore, the Provisional Attachment Order is justified,' the July 3 order said. The ICICI Bank and Chanda Kochhar came under regulatory scrutiny after The Indian Express first reported on March 29, 2018 that Videocon Group promoter Venugopal Dhoot provided crores of rupees to a firm he had set up with her spouse, Deepak Kochhar, and two relatives, six months after the Videocon Group got Rs 3,250 crore as loan from ICICI Bank in 2012. In December 2017, the CBI had registered a preliminary enquiry into the sanctioning of the loan. In January 2019, the CBI booked the Kochhars, Dhoot and others, and said Chanda Kochhar had 'dishonestly' granted loans to the tune of hundreds of crores of rupees to the Videocon Group 'in contravention of rules and policy… by abusing her official position'. The ED had then registered a case based on the January 2019 CBI FIR. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
India.com
22-07-2025
- Business
- India.com
Ex-ICICI Bank CEO Chanda Kochhar held guilty in Rs 640000000 bribery for approving Rs 300 Crore loan
In the ICICI Bank-Videocon loan case, the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) has found former ICICI Bank CEO Chanda Kochhar guilty of accepting a bribe of Rs 64 crore in exchange for approving a Rs 300 crore loan to the Videocon Group in 2009. This order overturns the earlier clean chit she received from the PMLA Adjudicating Authority and supports the Enforcement Directorate's (ED) provisional attachment of her assets, framing the transaction as a prima facie case of money laundering. Conflict Of Interest In Kochhar's Approval To Videocon The Tribunal showed a clear conflict of interest in Kochhar's approval of the loan. Shortly after disbursing the funds to a Videocon entity, Rs 64 crore was traced to NuPower Renewables Pvt. Ltd. (NRPL), a company promoted by her husband Deepak Kochhar. This sum was funneled via Supreme Energy Pvt. Ltd. (SEPL), which is reportedly linked to Videocon's promoter Venugopal Dhoot. While the Tribunal acknowledged that a final determination rests with the Trial Court, it concluded there was sufficient preliminary evidence to justify the attachment order under money laundering charges. The bench of the Appellate Tribunal, while delivering its findings, stated that it could not accept the justification offered by Chanda Kochhar for presiding over the committee meeting that sanctioned a Rs 300 crore loan to the Videocon Group, an entity she was familiar with. The tribunal observed that Kochhar could not claim ignorance of the relationship and, therefore, her participation in the loan sanctioning process was in clear violation of ICICI Bank's internal rules and policies. Rs 64 Crore Fund Diversion To NRPL The tribunal further noted that immediately after the disbursement of the Rs 300 crore loan, a sum of Rs 64 crore was diverted to NuPower Renewables Pvt. Ltd. (NRPL), where Deepak Kochhar, the respondent and husband of Chanda Kochhar, was managing the company. He held 95% stakes in Supreme Energy Pvt. Ltd. (SEPL), which in turn controlled NRPL. Notably, V.N. Dhoot resigned from SEPL on January 15, 2009, transferring control of the company to Deepak Kochhar. In its order, the tribunal criticized the Adjudicating Authority for ignoring evidence and instead relying on irrelevant considerations. It stated that the Authority had disproportionately focused on the shareholding structure of NRPL while overlooking the fact that Deepak Kochhar was the Managing Director and in full control of the company's operations. This was further supported by the statement of V.N. Dhoot recorded under Section 50 of the Prevention of Money Laundering Act (PMLA), 2002, wherein he categorically affirmed that Deepak Kochhar was running the affairs of the company. (With Inputs From ANI)
New Indian Express
22-07-2025
- Business
- New Indian Express
Chanda Kochhar found guilty of accepting a Rs 64 crore bribe in ICICI-Videocon loan case
CHENNAI: In a significant development in the ICICI Bank–Videocon loan case, the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) has found former ICICI Bank CEO Chanda Kochhar guilty of accepting a Rs 64 crore bribe in exchange for sanctioning a ₹300 crore loan to the Videocon Group in 2009. The tribunal, according to reports, in its order dated July 3, 2025, established that the payment was a clear quid pro quo, linking the disbursement of the loan to benefits received by Kochhar's husband through his firm, NuPower Renewables Pvt Ltd. The tribunal overturned a previous order issued by the adjudicating authority under the Prevention of Money Laundering Act (PMLA), which had in November 2020 ordered the release of assets worth Rs 78 crore belonging to Kochhar. The latest ruling described the earlier decision as flawed, stating that it was based on 'irrelevant considerations' and had 'ignored material facts.' According to the tribunal's findings, the ₹64 crore was routed through Supreme Energy Pvt Ltd into NuPower, a company owned and controlled by Deepak Kochhar, Chanda Kochhar's husband. Though NuPower was initially held in the name of Videocon Group promoter Venugopal Dhoot, the tribunal accepted Dhoot's recorded PMLA statement that it was Deepak Kochhar who maintained full control over the entity. The fund transfer took place just one day after the Rs 300 crore loan was disbursed to Videocon International Electronics Ltd.
India Today
14-07-2025
- Business
- India Today
Tribunal raps ED for ignoring due process in launching probe into Pune land deal
An appellate tribunal came down heavily on the Enforcement Directorate (ED) for making a land parcel in Pune a subject of their investigation without following due process and Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) Appellate Tribunal quashed the ED provisional attachment orders on land in Pune's Hinjewadi purchased by a trading land, intended for development by Hindavi Swarajya Trading Company, was linked to an ED probe, without the knowledge of the cooperative society and its The tribunal highlighted negligence on the part of the ED and collusion of the investigating/enquiry officer in keeping the director of the company in the case involves land acquisition by Hindavi for a group cooperative housing society, which houses 126 flats. Homebuyers had secured extensive loans from banks to fund their tribunal noted that negligence by the ED has risked public money in the form of home loans from government and private banks to the tune of approximately Rs 30 crore. Despite due diligence by the company, the ED did not inform the director about the attachment tribunal also rapped the ED over its failure to disclose the attachment status during the land purchase diligence, stating, "At this belated stage, when the land is already sold, developed and constructed into flats, and thereafter, the said flats were sold to a large number of owners, the situation cannot be reversed at this stage. Otherwise, it will prejudice the interests of the appellants and buyers of the flats".The tribunal underscored that both the company and the banks had conducted thorough verification processes, and during the intervening period no steps were taken by respondent ED to restrain the development and sale of flats to the counsel for the appellants, Faraz Khan, welcomed the ruling, and said that the decision draws a constitutional boundary by punishing launderers and not honest citizens."Due diligence is not a game of hide and seek. When the State attaches property, it must shout it from the rooftops—register it, publicise it, mark it. The ED's failure to follow this process almost destroyed the lives of 126 families," Khan said."Freezing and de-freezing crores of suspected laundered funds while concealing attachment from an innocent purchaser is not just carelessness, it is institutional failure. This ruling sets a template for all such cases where third parties unknowingly buy into attached properties. It's a victory for every ordinary home-buyer," Khan added.- EndsTune InMust Watch
Hindustan Times
26-06-2025
- Hindustan Times
J&K police attach property worth ₹1 crore of alleged drug peddler in Srinagar
Jammu and Kashmir Police on Wednesday attached property worth ₹ 1 crore of an alleged drug peddler under NDPS Act in Srinagar. The police said that the said property has been established as having been 'acquired through proceeds of illicit drug trafficking'. (File) Officials said that they took a major action against the drug menace in Srinagar and attached a residential property—comprising a two-storeyed house along with land—worth approximately ₹ 1 crore. 'The property belongs to a notorious drug peddler, Pervaiz Ahmad Bhat, resident of Takanwari, Karnabal. The accused is involved in Case FIR No. 02/2024 under Sections 8, 20, and 29 of the NDPS Act registered at police station Sangam,' a police spokesperson said. Bhat is presently under preventive detention under the PIT-NDPS Act. The police said that the said property has been established as having been 'acquired through proceeds of illicit drug trafficking'. 'Acting under Sections 68-E and 68-F of the NDPS Act, and following due confirmation by the competent authority under SAFEMA (Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act), New Delhi, the immovable property has been formally seized and attached. It shall not be sold, transferred, or otherwise dealt with without prior permission from the competent authority,' the spokesperson said. The police said that the accused has a 'history' of drug peddling and was actively involved in supplying narcotics, especially targeting the local youth. 'This action is part of J&K Police's continued crackdown on drug trafficking networks. By targeting and dismantling the financial infrastructure of such networks, police aim to curb the spread of narcotics and safeguard the community,' the spokesperson said.
