On Tuesday, the Supreme Court deferred the hearing on the Central Bureau of Investigation's (CBI) challenge against the Bombay High Court's decision for granting bail to former ICICI Bank CEO and MD, Chanda Kochhar, and her husband, Deepak Kochhar, in a loan fraud case.

The bench, comprising Justices Bela M Trivedi and Satish Chandra Sharma, considered the request of senior advocate Amit Desai, representing the Kochhars, to appear physically for the argument due to connectivity issues.

Despite opposition from Additional Solicitor General S V Raju, representing the CBI, the bench rescheduled the hearing to January 3, 2024. The CBI had petitioned against the interim bail granted by the Bombay High Court, arguing that it was based on an incorrect assumption about the maximum sentence for the offense. The CBI emphasized the implications of section 409 of the IPC (criminal breach of trust by a public servant), which carries a sentence ranging from 10 years to life imprisonment.

During the proceedings, the bench questioned the applicability of section 409 to a case involving a private bank. ASG Raju clarified that, even though the bank is private, the case involves public money, justifying the invocation of section 409.

The Supreme Court also reprimanded the investigating agency for not objecting to the repeated extensions of the two-week interim bail granted to Chanda Kochhar and her husband. The Bombay High Court had granted bail to the couple on January 9, stating that their arrest did not align with legal provisions.

The CBI had arrested the Kochhars on December 23, 2022, in connection with the Videocon-ICICI Bank loan case. The Bombay High Court, basing its decision on the presented facts, emphasized a lack of compliance with Section 41A of the Code of Criminal Procedure (CrPC), which mandates the issuance of a notice for appearance before the concerned police officer.

In addition to ordering the Kochhars to cooperate with the investigation and appear before the CBI upon summons, the high court mandated them to surrender their passports to the CBI. The CBI's allegations revolve around ICICI Bank allegedly granting Rs 3,250 crore in credit to Videocon Group companies, violating banking regulations and credit policies.

The CBI had implicated Chanda Kochhar, Deepak Kochhar, Videocon group founder Venugopal Dhoot, Nupower Renewables (NRL), Supreme Energy, Videocon International Electronics Ltd, and Videocon Industries Ltd in the FIR registered in 2019. The charges include criminal conspiracy and provisions of the Prevention of Corruption Act, alleging a quid pro quo arrangement involving financial transactions between the parties.