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Congress counters ICICI Bank’s defence of payments to SEBI chief, poses fresh questions: ‘Let PM respond’
The Congress party has alleged that SEBI chief Madhabi Buch had a conflict of interest in dealings with ICICI, one of the country's largest private lenders.
Responding to ICICI Bank’s statement concerning payments made to the current SEBI chief Madhabi Puri Buch, the Congress party on Tuesday claimed that the bank’s clarification raises more questions than it answers.
Congress earlier alleged that Buch had earned ₹16.8 crore from 2017 to 2024 in salary and through stock options from the bank.
ICICI Bank issued a clarification via a notice to the stock exchange, asserting that the payments made to Madhabi Puri Buch after her exit from the bank were purely retirement benefits, not salary or employee stock options (ESOPs).
Pawan Khera, chairman of media & publicity for the All India Congress Committee (AICC), questioned several alleged inconsistencies in ICICI’s explanation.
“Why has this so-called ‘retiral benefit’ been non-uniform both in terms of its frequency and amount?” Khera said in a statement, noting that the payments varied significantly over the years.
"However, the so-called "retiral benefit" given by ICICI to Ms. Madhabi P. Buch from 2016-17 to 2020-21 averages to around Rs. 277 lacs per annum. How can a person's "retiral benefit" be more than her salary as an employee?" he added.
Khera said Buch’s average annual salary at ICICI was ₹1.3 crore, yet her so-called “retiral benefits” from 2016 to 2021 averaged ₹2.77 crore per annum.
“How can a person’s ‘retiral benefit’ be more than her salary as an employee?” Khera wondered.
The Congress leader countered ICICI's clarification that employees, including retired ones, had the option to exercise ESOPs up to ten years post-vesting.
Citing ICICI’s publicly disclosed ESOP policy, which allows former employees to exercise their options within a maximum of three months post-termination, Khera asked, “Where is this ‘revised policy’ under which Ms. Madhabi P. Buch was able to exercise ESOPs 8 years after her voluntary termination?”
Khera also raised concerns about ICICI Bank paying the Tax Deducted at Source (TDS) on Buch’s ESOPs on her behalf. He questioned whether this protocol is followed for all employees or if Buch received preferential treatment.
“Does it follow the same protocol for all its past and present employees? Why did ICICI not offer this TDS amount as taxable income of Ms. Madhabi P. Buch? Is this not a clear non-compliance of the Income Tax Act?” he said.
Congress wants PM Modi to respond
“Let the PM come forward and respond, he is the one who appointed Madhabi Puri Buch as chairperson of SEBI, the onus lies on him, he needs to respond. A former BJP MP has also levelled serious allegations against SEBI and the chairperson,” Khera told PTI.
Buch has been at the centre of a storm following accusations by Hindenburg Research that she and her husband previously held investments in offshore funds also used by the Adani Group, which is being investigated by the regulator. She has denied the accusations.
