Former ICICI Bank chief executive Chanda Kochhar has moved the Bombay High Court against her ex-employer seeking specific performance commitments and contractual obligations promised to her after her early retirement in October 2018.
Kochhar submitted in the Bombay High Court that ICICI Bank reneged from its contractual commitments and cannot terminate a person who has already retired. As per people in the know, the stock options due to Kochhar could run into over Rs 1,000 crore at current market value.
On Thursday, while hearing a petition filed by her, Justice AK Menon allowed ICICI Bank to file its response in two weeks and adjourned the case to March 24.
As per the High Court website, Kochhar filed this appeal on January 28.
“Certain post-retirement benefits to Chanda Kochhar were granted to her unconditionally whilst certain other benefits were subject to the enquiry being conducted by retired Justice BN Srikrishna’s committee,” a person close to development said. “The benefits granted to her unconditionally include employee stock options that were exercisable until 2028 and a portion of those stock options is now expiring in the month of April. The total value as per the current market price of such shares would be more than Rs 1,000 crore.”
ICICI Bank and Chanda Kochhar did not respond to mailed queries.
After receiving a whistle-blower complaint making allegations against Chanda Kochhar, the ICICI Bank board decided to institute a private enquiry around May 2018, post which Kochhar proceeded on leave. In October, the bank accepted her request for early retirement and agreed to provide certain benefits.
In January 2019, ICICI Bank’s internal inquiry allegedly found that Chanda Kochhar had violated disclosure norms on conflict of interest and that her October 2018 exit would not be treated as normal resignation but as a dismissal.
At the time of the development, the bank had said that it would also seek to claw back bonuses handed out during her tenure as CEO, and she was to lose all dues and stock options for which she otherwise would have been eligible.
When contacted, Rohan Dakshini, partner at Rashmikant & Partners, who appeared along with Senior Advocate Aspi Chinoy for Kochhar, refused to comment since the matter is subjudice. ICICI Bank is being represented by Senior Advocate Darius Khambata and the law firm Veritas Legal.
“ICICI Bank was fully aware of the terms of reference and the scope of enquiry and with full knowledge had entered into a contract with Chanda Kochhar granting her certain retirement benefits unconditionally,” a source close to Kochhar told ET. “The Bank has reneged from its contractual commitments and obligations. This has led to Kochhar filing a suit against the bank to seek specific benefits.”
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