Former ICICI Bank CEO Chanda Kochhar has taken her legal battle to the Supreme Court, challenging the bank’s decision to terminate her following her resignation in October 2018. The termination came amidst allegations of her involvement in sanctioning out-of-turn loans worth ₹3,250 crore to the Videocon Group, which were purportedly beneficial to her husband, Deepak Kochhar.
The Bombay High Court had previously refused to rule against ICICI Bank’s termination of Chanda Kochhar, stating that the bank had valid reasons to terminate her. In her plea to the Supreme Court, Kochhar argues that the high court did not adequately consider her argument that the bank lacked a legal or contractual basis to terminate her after she had voluntarily resigned.
ICICI Bank conducted an internal inquiry in 2019, concluding that Kochhar had violated conflict of interest norms, which led to her exit being classified as a dismissal rather than a normal resignation. As a result of her termination, Kochhar was deprived of post-retirement benefits and entitlements.
Kochhar’s petition to the Supreme Court asserts that her rights, including Employee Stock Options (ESOPs), were “wrongfully revoked” by the bank following her “illegal termination post her retirement.” She has urged the apex court to restrain ICICI Bank from obstructing or interfering with her exercise of vested and unvested stock options, which were granted to her under the bank’s Retirement acceptance letter issued in October 2018.
Additionally, Kochhar has been prevented from dealing with 690,000 shares she holds. She contends that the high court erred in determining that the balance of convenience favored the bank.
In her plea, Kochhar highlights her achievements, including receiving the Padma Bhushan, one of the country’s highest civilian awards, and being recognized as one of the most powerful women in her field. She expresses her dismay at facing “grave persecution” at the age of 62.
The legal battle between Chanda Kochhar and ICICI Bank has garnered significant attention due to its implications for corporate governance and accountability in India’s financial sector. The case has raised questions about the ethical conduct of top executives and the handling of conflicts of interest within private banks.
The Supreme Court’s decision in this matter could have far-reaching consequences, as it will determine whether Kochhar’s termination by ICICI Bank was legally justified or if her rights and entitlements were wrongfully revoked.
A bench led by Justice Sanjiv Khanna is scheduled to hear the case in two weeks, and the outcome will likely provide clarity on the legal aspects of the termination and its implications for Chanda Kochhar’s career and benefits.
