ICICI-Chanda clawback case is likely to end up being challenged in court

The provision isn't part of legal statute in India, making it vulnerable to legal challenge

On January 30, the board of ICICI Bank stirred up a hornet’s nest by announcing it would claw back all the bonuses and stock options given to former Chief Executive Officer (CEO) and Managing Director (MD) Chanda Kochhar between April 2009 and March 2018. This followed a report by a probe panel headed by former Supreme Court judge B N Srikrishna that indicted Kochhar for violation of the bank’s Code of Conduct in the Videocon loan case.

The rarely used clause in the employment agreement has left legal experts and HR executives divided on whether the bank's board has gone overboard