CORPORATE FINANCE GROUP ASSIGNMENT

Anusha Sama-AP20311130012
Rishita Saripalle-AP20311130025
Hemanth Nadella-AP20311130004

Report on any case relating to agency problem faced by Indian

company/shareholders in the last 5 years?

Introduction:
The report is about case between ICICI bank and Videocon group.
this case involves ICICI bank and Videocon group, Nu power renewables pvt ltd
The people involved in this case are Chanda Kochhar (former managing director and CEO
of ICICI Bank), her husband Deepak Kochhar and Venugopal dhoot (managing director of
Videocon Industries Ltd).

Incidents happened:
The case rotates around a loan given by ICICI bank to the Videocon group as a part of state
bank of India and the change of ownership in a firm called Nupower Renewables pvt ltd
which was floated as an equivalent joint venture between deepak kochhar and Videocon
CEO Venugopal dhoot.
On August 26, 2009, a rupee term loan of Rs 300 crore was sanctioned to Videocon
International Electronics Ltd (VIEL) by the sanctioning committee in which Chanda
Kochhar was one of the members of the sanctioning committee, who used her official
position and sanctioned this loan in favors of Videocon International Electronics Ltd.
On September 8, 2009, a day after the disbursement of loan, Rs 64 crore, out of a loan
amount of Rs 300 crore sanctioned by a committee of ICICI Bank headed by Chanda
Kochhar to Videocon International Electronics, was transferred to Nupower Renewables
owned by Deepak Kochhar by Videocon Industries.
On October 2016, after an investor informant Arvind Gupta, an investor in both ICICI Bank
and Videocon Group, raised questions via a blog, the topic of suspected loan irregularities
came to light.
Gupta alleged that Chanda Kochhar influenced Venugopal Dhoot-led Videocon group’s Rs
3,250-crore loan in 2012 in exchange for a deal with NuPower Renewables and Supreme
Energy, a renewable energy business owned by her husband Deepak Kochhar.
The case has again come into the spotlight on March 2018 when another anonymous
informant complained against the bank and its top administration including Kochhar, these
lead to deliberate delay in recognizing other 31 loan accounts between 2008 and 2016.
These complaints led to an investigation by numerous agencies, including the Central
Bureau of Investigation (CBI), enforcement directorate (ED) and Serious Fraud
Investigation Office (SFIO).
On May 30, 2018 the ICICI Bank board starts an independent investigation. And on 30
January, 2019, the panel finds that kochhar has violated the banks code of conduct.
On Jan 22, 2019 the Central Bureau of Investigation filed a first information report against
ICICI Bank Ltd’s former managing director and CEO, Chanda Kochhar, her better half that is
Deepak Kochhar and VN Dhoot who is a managing director of Videocon Industries Ltd. over
alleged inconsistencies in transactions between the lender and private entities.
On January 24, 2019 the CBI files an FIR against Chanda Kochhar, her husband Deepak
Kochhar, and Videocon group MD Venugopal Dhoot over alleged loan defaults granted to
the company by the bank in 2012, which were declared non-performing assets that caused
a loss of ₹1,730 crores to the ICICI bank.