The recent tribunal verdict against former MD and CEO of ICICI Bank, Chanda Kochhar raises concerns about financial deviations. She was found guilty by the tribunal court of receiving a ₹64 crore bribe in connection with a ₹300 crore loan to the Videocon Group.
Kochhar’s case is not just about individual misconduct. It, however, reflects an uncomfortable truth about India’s banking elite. While the common man faces immense pressure over missed EMIs and loan rejections, top executives have played by their own rulebook.
When Rules Bend for the Powerful
The funds, routed through SEPL, a subsidiary of Videocon, were sent to NuPower Renewables Pvt. Ltd. (NRPL), a firm managed by Deepak Kochhar, Chanda Kochhar’s husband. At the time the money was transferred, he was serving as the Managing Director of NRPL.
The verdict aligns with the Enforcement Directorate’s (ED) ongoing investigation, which had earlier led to the attachment of assets belonging to the Kochhar family under the provisions of the Prevention of Money Laundering Act (PMLA).
Although small borrowers face hurdles when applying for loans, extensive documentation, a good credit score, and constant follow-ups make it a rigorous application process. The loan granted to Videocon is a stark example of how regulatory checks can fail for some, while being rigorously applied to others.
Obtaining a Loan is Complex for the Common Man
In India, obtaining a loan can sometimes be a very complex and stressful process for individuals and small businesses. There are high credit requirements, strict documentation, and frequent follow-ups needed before you get your loan sanctioned. The challenge increases if you default on a loan, it can lead to harassment, legal actions, or even your assets seize.
In contrast, larger corporate entities often find it easier to access large loans, sometimes without sufficient scrutiny. This discrepancy in how loans are handled raises important questions about fairness and due process in the banking sector.
However, the Kochhar case is just one example in a broader landscape of challenges facing the financial sector.
The question remains: how many similar cases exist, and how can they be prevented in the future?
