New Delhi, Jan 30 : The ICICI said on Wednesday that Chanda Kochhar, who had quit as CEO and managing director of the bank in October, was in violation of the ICICI Bank Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties.
Ms Kochhar has been "terminated", said the ICICI in a statement.
This means her entitlements including increments, bonuses, medical benefits and stock options, have been cancelled. She has to return bonuses paid from April 2009 to March 2018, the bank said.
'The Enquiry Report, with the scope period of April 1, 2009 to March 31, 2018, concluded, primarily on account of ineffectively dealing with conflict of interest and due disclosure or recusal requirements, that Ms Chanda 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 release based on enquiry report considered by the Board received from Justice (Retd) BN Srikrishna said.
'The Enquiry Report also concluded that her lack of diligence with respect to annual disclosures as required by the Bank in terms of its internal policies, the ICICI Bank Code of Conduct and applicable Indian laws, rules and regulations on her interests (direct or indirect) towards avoidance of conflict of interest, when considered that the Bank’s processes were dependent solely on the directors discharging their fiduciary duty to recuse themselves and avoid conflict, implies that the Bank’s processes were rendered ineffective by her approach to such disclosures and avoidance of conflict.'
The Bank notes that there are no implications of the Enquiry Report on its published financial statements (Indian or US GAAP) for the relevant periods.
Following the receipt of the Enquiry Report, and due consideration of the Enquiry Report and the conclusions thereat, after due deliberations, the Board of Directors decided to treat the separation of Ms Chanda 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 including revocation of all her existing and future entitlements such as any unpaid amounts, unpaid bonuses or increments, unvested and vested & unexercised stock options, and medical benefits, and require the clawback of all bonuses paid from April 2009 until March 2018, and to take such further actions as may be warranted in the matter.
Chanda Kochhar has been accused of criminal conspiracy and cheating by the CBI, along with her husband Deepak Kochhar and Videocon head Venugopal Dhoot, in a case linked to alleged irregularities in an over Rs. 3,000-crore loan. (UNI)