Deepak Kochhar Arrested by ED in Connection to ICICI Bank-Videocon Loan 'Scandal'; Timeline of The Case

New Delhi, September 7: Deepak Kochhar, the husband of former ICICI Bank chief executive officer (CEO) Chanda Kochhar, was arrested by the Enforcement Directorate on Monday in connection to the ICICI Bank-Videocon loan case. Kochhar was arrested after he allegedly refused to cooperate in the probe after being summoned by the agency on Monday. ICICI Bank Seeks Recovery of Amounts from Chanda Kochhar.

Deepak, an entrepreneur who heads the NuPower Renewables, came under the radar of probing agencies after a series of investigative reports revealed that his company had allegedly received kickbacks after a big-ticket loan was sanction to the Videocon group by the ICICI Bank.

The loan was sanctioned at a time when Deepak's wife Chanda Kochhar was heading the operations of the ICICI Bank, one of the leading private lenders in India. After the alleged quid pro quo case came to light, Chanda was compelled to step down from her post.

Timeline of The ICICI Bank-Videocon Loan 'Scandal'

* Videocon Iindustries Ltd (VIL) paid Rs 64 crores purportedly as "advance" to Supreme on 8/09/2009.

* VIL then assigned this advance/receivable from Supreme to its Group company IRCL on 05/07/2011.

* Indian Refrigerator Company Ltd (IRCL) it turn assigned it to another group company, Real Cleantech Pvt Ltd (RCLP) on 05/08/2011.

* The Present status of RCPL is "Struck off" in RoC Records as ROC struck this company under Section 248 being defaulting in fining AR and BS after 2014 even though the amount is still payable by Supreme to VIL Group.

* In lieu of this Advance, Supreme Energy allotted OCDs worth Rs. 64 Crores to RCPL on 05.10.2011.

* RCPL allotted 0% OCDs to IRCL on 31/03/2012.

* RCPL and IRCL are both VIL Group Companies and still continue to be same, except the fact that RCLP is now struck off.

* In view of RCLP being Struck Off Company, this receivable by RCPL/VIL Group from Supreme (or Kochhar Group of Companies) is highly nonexistent/doubtful. It is clear that Videocon Group had no serious intention to recover the funds. Further, the flow of Rs 64 crore received from VIL by Supreme and further flow in Kochhar group is as under:

* Supreme Received Rs 64 crore from VIL on 08/09/2009 shown as unsecured loan as per BS as at 31.03.2010.

* On the same day, on 08/09/2009, Supreme transferred this amount to NuPower Renewables purportedly for subscription for allotment of Zero Coupon Fully Convertible debentures.

* NuPower allotted such debentures to Supreme on 25.03.2010.

* Such Debentures were converted to Equity on 19.03.2016 at a premium of Rs 1,156.50 per share to Supreme and allotted 548,650 equity shares aggregating to Rs 64 core. The premium was on the basis of a valuation report by PWC which is already under examination by Income Tax Department (details may be examined during inspection of NuPower).

* NuPower is in the business of Wind Power using such funds coupled with bank loans and from other entities too. The said wind power assets of NuPower were later hived off into three parts by way of Slump Sale to NuPower Wind Farms Limited (Under inspection) and Echanda Urja Private Limited (under inspection) and the third portion remains with NuPower.

How Companies/corporate structures have changed hands and considerations involved:

* Supreme was a company belonging to V.N. Dhoot as all the shares were held by Dhoot and his associates at the time of "advance" of Rs 64 crore of funds by VIL to Supreme.

* Dhoot transferred all his equity held in Supreme to Mahesh Punglia (his consultant CA) on 2.11.2010 at par (9990 equity shares of Rs 10 each at par) while Rs 64 crore was still receivable by VIL from Supreme and at present which is still receivable by RCPL (Videocon group Company)

* In the meantime, Dhoot floated another company NuPower jointly with a Company, Pacific Capital Services Private Limited (a company owned by the relatives of Deepak Kochhar) as 50:50 venture.

* NuPower became subsidiary of Supreme as result of sale of all 50% of his shares by Dhoot to Supreme at Par (24996 shares of Rs 10 each totaling to Rs 2,49,960) and Pacific sold to Supreme of its 22500 equity Shares of Rs 10 totalling to Rs 225000 at par). Rest of the shares held by pacific were sold to Deepak Kochhar at par.

* Later, on 12.03.2012, NuPower further allotted 1897000 equity shares of Rs 10 each to Deepak Kochhar as managing trustee of Pinnacle Trust and 100000 equity shares of Rs 10 each Sunil Bhuta on conversion of warrants. Consequently, NuPower ceased to be subsidiary of Supreme and 97.66 % were held by Deepak Kochhar and his associates and only 2.32% with Supreme.

* Puglia sold his entire share holding of 9990 equity of Rs 10 each in Supreme (which he had got at par from Dhoot to Deepak Kochhar in his capacity as the managing Trustee of Pinnacle Energy Trust on 29.09.2012 at par totaling to about Rs 10 lakh. On the same date, the remaining 10 shares held by Vasant Kakade (an associate of Dhoot) were transferred to Prem Rajani (an associate of Kochhar]. At this stage Dhoot, even indirectly, exited from the ownership of Supreme and it became a hundred percent company of Deepak Kochhar (through his trust) at par face value of Rs 10 per share even though at this stage also a sum of Rs 64 crore was due from Supreme to RCLP (Group company of Videocon).

* Thus, Deepak Kochhar owned and controlled both Supreme and NuPower even though at this stage also a sum of Rs 64 crore was due from Supreme to RCLP (Group Company of Videocon now struck off).

* Later, sums of about Rs 325 crore have flown in NuPower from Essar Group/Firstland Holding Limited between 2010 to 2012.

* NuPower acquired Wind Powers from Shriram Group and also constructed its own wind power business by consolidated funds in its kitty (sum total of funds from Videocon, Firstland, DH Renewable, bank loans etc).

* Later, this company under inspection namely NuPower Wind Farm Limited was incorporated by Deepak Kochhar.

* The Wind Power Business of NuPower was sold by slump sale to the company under inspection and another part to NuPower Wind farms and third undertaking remains with NuPower.

(With IANS inputs)

(The above story first appeared on LatestLY on Sep 07, 2020 08:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).