Chanda Kochhar won't take it lying down

MUMBAI: Former ICICI Bank chief executive Chanda Kochhar has hired the services of securities law expert Somasekhar Sundaresan to launch a defence against charges that she violated the bank’s code of conduct and the clawback of financial benefits she is entitled to in her nine years at the bank’s helm.Sundaresan, an independent counsel and former head of the securities law and financial sector regulatory practice at J Sagar Associates, confirmed that he has been hired by Kochhar as her legal representative.“We are yet to receive a copy of the Srikrishna report. Only after we receive a copy will we decide on our next course of action,” Sundaresan said.Lawyers said Kochhar has no choice but to file a civil suit in the matter to challenge the indictment by the Srikrishna Committee. The suit is likely to challenge the indictment based on the argument that Kochhar was not allowed to present her case to the committee. Kochhar did not reply to messages seeking comment.“Kochhar has to take the legal route. There is no other option. She can challenge the committee’s findings arguing that principles of natural justice were not followed and she was not heard adequately. Though the findings of the report are not out, it can be assumed that the committee has arrived at this verdict based on documents and evidence placed before it which cannot be challenged,” said KP Sreejith, managing partner at IndiaLaw, a Mumbai-based law firm.The Srikrishna Committee has found Kochhar to be in violation of the ICICI code of conduct in dealing with conflict of interest and fiduciary duties. It concluded that she lacked diligence with respect to annual disclosures as required by the bank’s internal policies. As a result, her services were terminated and existing and future entitlements revoked.Conflicts of interest include having an interest in a transaction involving the bank, receiving loans or guarantees of an obligation as a result of the position with the bank or directing business to a supplier owned or managed by, or which employs, a relative or friend, the bank’s internal document shows.Conflicts of interest by directors in the bank have to be disclosed to the group compliance officer who has to notify the bank board’s governance & remuneration committee. In response to ET’s query ICICI Bank said, “The chairman/managing director or other director who is directly or indirectly concerned or interested in any proposal would disclose the nature of his/her interest to the Board when any such proposal is discussed. He is required not to be present in the meeting unless his/her presence is required by the other directors for the purpose of eliciting information and the director so required to be present would abstain from voting on any such proposal.”However, some have questioned the bank board’s handling of the whole issue pointing out that the board last year had given a clean chit to Kochhar in the same case.

from Economic Times http://bit.ly/2UAhaoL