The Additional Solicitor General SV Raju, representing the CBI, argued that the high court had made a mistake by assuming that the offense is punishable with a maximum of seven years imprisonment. Raju pointed out that the offense falls under section 409 of the IPC (criminal breach of trust by public servant), which entails a sentence ranging from 10 years to life imprisonment.
The bench questioned Raju on how section 409 of the IPC applies when it is a private bank involved. In response, Raju stated that although the bank is private, it deals with public money. The bench has decided to issue notice and has asked for the Kochhars' reply within three weeks.
On January 9, the high court criticized the CBI for the "casual and mechanical" arrest of the Kochhars in the loan fraud case. The court granted them interim bail, stating that the arrest was made without proper consideration. The CBI had arrested the Kochhars on December 23, 2022, in connection with the Videocon-ICICI Bank loan fraud case.
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