RBI probe in 2016 found no proof of 'quid pro quo' in Videocon loans
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RBI probe in 2016 found no proof of 'quid pro quo' in Videocon loans

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The Reserve Bank of India had two years back conducted a detailed scrutiny to probe allegations of impropriety in ICICI Bank extending loans to Videocon Group, but found no proof of any "quid pro quo" or reciprocal benefits, according to RBI documents. The RBI had undertaken a scrutiny in mid-2016 after the Prime Ministers Office referred to its allegations of ICICI Bank CEO Chanda Kochhars husband, Deepak, reaping windfall gains from his association with businessman Venugopal Dhoot, whose Videocon Group is a large debtor to ICICI Bank.

The RBI, which is the regulator for the banking sector, in its first response, sometime in mid-July of 2016, stated that ICICI Bank had sanctioned a loan of Rs 1,730 crore to the Videocon Group in 2012, as part of a debt consolidation programme undertaken through a consortium of banks led by the State Bank of India, according to the documents and sources with direct knowledge of the matter. It went on to state that it was difficult to establish any conflict of interest in the sanctioning of the loan, but flagged that it was not able to determine the sources of funding in some of the transactions involving Deepak Kochhars renewable energy venture NuPower.

The source of funding was critical for ascertaining the legitimacy of NuPower transactions, the RBI had said, adding that it was for investigative agencies to ascertain that. Later in Decembe...

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