Bombay High Court Quashes Prosecution Against Chanda Kochhar, ICICI Bank Officials In Octroi Avoidance Case

The Bombay High Court has recently quashed the prosecution and 2009 summons issued by a Pune court to former ICICI Bank chief Chanda Kochhar and four senior officials in a case alleging octroi avoidance on imported gold coins. However, the case will proceed against the bank itself

A single bench of Justice Neela Gokhale observed that the complaint made by the Pune Municipal Corporation did not disclose any specific act by the officials and therefore could not support their prosecution.

The court clarified the scope of the municipal offence, observed that “Section 398 of the BPMC Act thus, can be invoked if (i) any vehicle, animal or goods, liable to octroi, are imported into the city limits; (ii) the payment of toll or octroi is not made and (iii) the non-compliance is with an intention of defrauding the Corporation.”

It also emphasised that “it is settled law that when a company is the accused, its directors, managers, secretary, etc, can be roped in only if there is some incriminating role ascribed to them.”

PMC said ICICI Bank brought gold bullions and coins into Pune between April 2006 and August 2009 without paying octroi. It calculated dues of Rs 1.27 crore, issued notices and filed a complaint, after which a Pune magistrate summoned Kochhar, former deputy managing director Nachiket Mor, a legal officer and the Bund Garden branch manager.

The officials argued that the complaint was vague and did not explain how any of them were involved. PMC maintained that the bank imported goods without duty and was therefore liable.

The High Court found that the complaint lacked the basic ingredients needed to prosecute individual officers. It said, “a plain reading of the complaint does not demonstrate any role specifically attributed to any of the Petitioner Nos.2 to 5."

It concluded that “prosecution against the Petitioner Nos.2 to 5 cannot continue in the absence of any averment ascribing a specific role attributed to them. There is no such pleading in the entire complaint.”

Case Title: ICICI Bank Limited and Ors v. State of Maharashtra and Anr

Case Number: CRIMINAL WRIT PETITION NO.487 OF 2010

For Petitioners: Advocates Faisal Ali Sayyed instructed by Advocate MK Ambalal

For Respondent: Advocates Abhijit P Kulkarni along with Advocates Sweta Shah and Abhishek Roy

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