ICICI Bank Managing Director and CEO Chanda Kochhar, who is facing allegations of quid pro quo in loans to the Videocon Group, is likely to stick to her previous stance that she was unaware of the business dealings between her husband Deepak Kochhar and Venugopal Dhoot.

However, the preliminary examination report by SEBI is understood to have favoured adjudication proceedings against ICICI Bank and Kochhar and has concluded that there was a conflict of interest in the transactions.

The adjudication process is likely to be started after formal responses from Kochhar and ICICI Bank, said an official familiar with the development. The bank, in its reply, is also expected to refer to the ongoing independent enquiry into the issue by retired Supreme Court judge Justice BN Srikrishna.

If the adjudication proceedings find reasonable cause, ICICI Bank could face a penalty between ₹25 lakh and ₹25 crore, while Kochhar could be fined ₹1 lakh—₹1 crore.

Sources said SEBI’s preliminary examination report found that Kochhar has admitted that her husband Deepak Kochhar had business dealings with the Videocon Group for many years.

“The Bank and its MD & CEO received a show-cause notice seeking a response as to why an inquiry should not held against them under the SCR Rules. ... An appropriate response ... would be submitted within the timeline provided,” said an ICICI Bank spokesperson.

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