Chanda Kochhar gets RBI as a party in termination case

Chanda Kochhar, the former Managing Director of ICICI Bank on Monday submitted the amended petition challenging her termination from the bank in the Bombay High Court. The amended petition has now added RBI as a party to the case.

The amended petition claimed that the RBI gave the approval without “due and proper application of mind.” It further claimed that RBI gave its nod to the bank, “by mechanically accepting the malafide request of ICICI Bank, dated February 5, 2019,” making the entire approval exercise as “perverse, null, void, and thus of no effect whatsoever.”

The High Court has now asked the central bank to submit its response till December 16. A division Bench of justices Ranjit More and SP Tavade have adjourned the case to December 18.

Chanda Kochhar filed a petition in the Bombay High Court on November 30 against her termination from the ICICI bank and the subsequent clawback of her bonuses. Her petition stated that her termination from the bank came on January 31, months after her voluntary resignation from the bank on October 5, 2018. She also claimed that the bank had not sought an approval from the RBI before terminating her. Kochhar’s lawyers Vikram Nankani and Sujay Kantawala said Section 35B of the Banking Regulation Act of 1949, requires prior RBI approval before terminating the services of a managing director of a bank.

Website | + posts

HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.

What's your take on this post ? Comment: