New Delhi
In a major embarrassment for ICICI Bank, an independent enquiry has indicted former CEO Chanda Kochhar for violating various regulations, and the lender has decided to stop all unpaid retirement benefits and also recover bonuses paid to her since 2009.

Kochhar, meanwhile, said she is “disappointed, hurt and shocked” by ICICI Bank decision to treat her resignation as a “termination for cause” after an independent probe indicted her.The leading private sector lender, which had given a clean chit to Kochhar in the Videocon loan matter, will also treat her resignation as ‘Termination for Cause’.

The board has also asked the bank to take steps for “clawback of all bonuses paid from April 2009 until March 2018, and to take such further actions as may be warranted in the matter”.

In March 2018, the board of ICICI Bank had given a clean chit to Kochhar and had said there was no question of favouritism, nepotism or conflict of interest on her part in granting loans to Videocon Industries or any other company.

Meanwhile, ICICI Bank CEO Sandeep Bakhshi said in analyst call that the bank has put out a statement about Kochhar, and the lender’s role now is limited to cooperating with regulatory agencies.

These, the statement said, include revocation of all her existing and future entitlements such as any unpaid amounts, unpaid bonuses or increments, unvested and vested and unexercised stock options, and medical benefits.

The board, following the receipt of the enquiry report, on Wednesday decided to treat “the separation of Kochhar from the bank as a ‘Termination for Cause’ under the bank’s internal policies, schemes and the Code of Conduct, with all attendant consequences”.

Kochhar became the CEO and managing director of the country’s leading private sector lender in May 2009 and left the bank in October 2018.The report found that “Kochhar was in violation of the ICICI Bank Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties, and in terms of applicable Indian laws, rules and regulations.”

The Srikrishna committee report concluded that there was lack of diligence with respect to annual disclosures as required by the bank in terms of its internal policies and violation of Code of Conduct and applicable Indian laws.

There were allegations of involvement of Kochhar and her family members in a loan provided to Videocon group on a quid pro quo basis.It was alleged that Videocon Group pumped money into NuPower Renewables, a firm owned by Deepak Kochhar, husband of Chanda Kochhar.The allegation of conflict of interest was levelled by whistleblower Arvind Gupta.