Fraud Allegations: Chanda Kochhar and Others Face FIR in Delhi over Tomato Paste Company Scandal

ICICI Bank’s former Managing Director and CEO, Chanda Kochhar, is once again entangled in a legal dispute. A new case has been registered against Chanda Kochhar in Delhi, accusing her and nine others of conspiracy with the Videocon Group to defraud the bank. The company claims to have incurred a loss of INR 27 crores due to their actions.

Aftermath of the 2009 Case:

This recent case gained attention when the Patiala House Court in Delhi ordered the initiation of an investigation by the Delhi Police on December 9. Subsequently, the Economic Offences Wing of the Delhi Police filed an FIR on December 20, charging them with criminal conspiracy, cheating, and other offenses.

Accused Individuals:

The FIR includes Chanda Kochhar, Sandeep Bakshi (CEO and MD of ICICI Bank), Vijay Jagdale (former manager of ICICI Bank), an unnamed official from ICICI Bank’s Global Trade Services unit in Mumbai, and Atul Kumar Goyal (MD-CEO, Punjab National Bank). It also involves K.K. Bhattacharya (former GM, Oriental Bank of Commerce), Akhila Sinha (AGM, PNB, later heading OBC’s branch), Manoj Saxena (AGM, PNB, later heading OBC’s branch), and K.K. Bhatia (former Chief Manager, OBC).

Director Shammi Ahluwalia Files FIR:

The FIR, filed by Shami Ahluwalia, Director of P&R Oversize Private Limited (Tomato Magic), alleges that the accused facilitated the genuine Letter of Credit (LoC) from a local Russian bank, RBS Alliance. However, ICICI Bank failed to verify that the LoC had been withdrawn and issued the entire payment without proper due diligence.

LoC Scandal Unveiled:

According to the FIR, ICICI Bank regarded the LoC issued by RBS Alliance as valid without recognizing its tainted reputation. It failed to realize that the Letter of Credit was initially issued by a Russian bank, not RBS Alliance, and that it was completely fake. ICICI Bank’s repeated oversight led to serious consequences.

Legal Consequences:

The FIR further reveals that ICICI Bank had verified the LoC to be authentic and legally valid, which, in reality, was entirely forged. The bank’s collaboration with the foreign banking entity resulted in a serious compromise of its reputation. The incident emphasizes ICICI Bank’s failure to exercise prudence and adhere to legal standards.