'Sebi acted in haste': Chanda Kochhar gets interim relief from SAT

Tribunal directs Kochhar to file a fresh application before Sebi

Granting interim relief to former ICICI Bank managing director & chief executive officer Chanda Kochhar, the Securities and Appellate Tribunal (SAT) on Thursday said Sebi “acted in haste in fixing a date for hearing without supplying the requisite documents to the appellant (Kochhar)”.

SAT directed Kochhar to file before Sebi a fresh application, indicating with clarity and precision the documents sought for inspection, within two weeks. After getting such a request, according to the tribunal, Sebi should either provide inspection or pass an appropriate order giving reasons why the appellant could not be provided inspection or a copy of the documents.

The case pertains to the allegations of ‘conflict of interest’ in approval of loans given by ICICI Bank to the Videocon group. Sebi had issued a show-cause notice to Kochhar on May 23, 2018.

Kochhar had submitted a detailed response to the notice on August 24, 2018. A personal hearing had been held on November 19, 2018 and the appellant had thereafter submitted written submissions on December 19, 2018. The matter was then reserved for orders. In November 2020, Kochhar received an amended show-cause notice by email. It was alleged that the amended notice was incomplete, as it was not accompanied by any enclosures, annexures, exhibits or appendices. On February 26, 2021, Sebi had directed ICICI Bank to produce the Project Indus Report, along with its appendices/annexures/exhibits in entirety. The lender had failed to provide the documents sought for Sebi, the SAT order mentioned.