ICICI Bank ex-executives face EOW Probe

The Economic Offences Wing (EOW) of the Mumbai Police has begun a probe into charges of alleged wrongdoing by ICICI Bank officials in a case filed by a hotelier.

The case pertains to a complaint filed by a hotelier in July this year against five former senior bank officials and an asset reconstruction company (ARC) for allegedly duping him of ₹120 crore. The original complaint at the BKC police station in Mumbai has been transferred to the EOW now.

The development comes soon after the recent controversial arrest of former SBI chairman Pratip Chaudhuri - which arose out of a complaint filed by a Jaisalmer-based hotelier over the sale of his hotel to an ARC by SBI in 2014.


One of the bank officials, who is employed by another institution now, was recently summoned by the EOW to provide details of transactions - from the sanction of loans to the sale to an asset reconstruction company after the borrower defaulted on payments.

"The senior executive was called in to explain certain banking procedures pertaining to sanctioning of loans, functioning of the credit committee and the process of roping in an ARC. The said executive joined the probe on Tuesday," a senior official with the Mumbai police told ET.

While the EOW maintains that the executive isn't being treated as an accused and was summoned only to explain the banking procedures, the FIR registered by the complainant Vishal Sharma with the BKC police station alleges fraud.

ICICI bank did not respond to ET's queries.

Sharma, director of Hotel Horizon Pvt Ltd in Mumbai, has alleged that in 2011 the bank sanctioned a 'senior term loan' of ₹326 crore and a 'subordinate term loan' of ₹25 crore to build a luxury hotel. He claims that even before the agreement was inked or the loan sanctioned, the bank officials recognised in their books to 'show profit'.

While Sharma made a request of ₹65 crore to be disbursed as the first instalment, the bankers who were part of the management committee submitted what the FIR filed by him describes as a "false proposal note" before the credit committee for immediate disbursement of ₹25 crore. "Of this, the bank deducted ₹15.5 crore from the loan amount towards processing fees and Sharma received ₹9.5 crore," the FIR states.

In June 2016, the complainant alleged that he was coaxed by the bank officials to pay ₹47.37 crore. "In the event this amount isn't paid then the processing fee amount and interest won't be returned," the FIR accessed by ET reads.

Subsequently, in September 2016, the loan was sold to an ARC. "The accused bank officials doctored minutes of the credit meetings, issued false statements and subsequently sold the loan to an ARC without my knowledge. While my liability was of ₹9.5 crore, the ARC in connivance with the bank officials staked a claim of ₹120 crore from my mortgaged assets which is worth over ₹1,200 crore," Sharma told ET.