E-Paper
ICICI denies paying salary, ESOPs to SEBI chief Madhabi Buch after retirement
Congress accused Buch of holding an office of profit at the ICICI Bank and receiving ₹16.8 Cr in substantial benefits from the bank and its subsidiaries.
Following Congress party's allegations, ICICI Bank on Monday clarified that neither it nor its group companies have paid any salary or given employee stock ownership plans (ESOPs) to SEBI chief Madhabi Puri Buch after her retirement, except for her retirement benefits.
“During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies,” the bank said in a statement.
It also mentioned that as per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.
“As per Income Tax rules, the difference between the price of the stock on the day of exercise and the allotment price is treated as perquisite income and is reflected in Part B of the Form16 of employees, including retired employees. The Bank is required to deduct the perquisite tax on this income. In addition, Form -16 covers the payment made towards the retiral benefits of former employees,” statement added further.
The Congress on Monday accused Buch of holding an office of profit at the ICICI Bank and receiving ₹16.8 crore in substantial benefits from the bank and its subsidiaries.
Addressing a press conference in Delhi, Congress leader Pawan Khera alleged that between 2017 and 2024, Buch received ₹12.63 crore from ICICI Bank, ₹22.41 lakh from ICICI Prudential, ₹2.84 crore from Employee Stock Ownership Plans (ESOPs), and ₹1.10 crore in Tax Deducted at Source (TDS) payments from ICICI, in addition to her salary from SEBI, which totaled ₹3.3 crore.
Khera questioned how the top authority of a regulatory body could ethically take income from an entity it regulates, and said, “Anyone with a little shame would not wait to give a resignation after this exposure.”
Madhabi Puri Buch opted for superannuation from the ICICI Group, effective October 31, 2013. US based short seller Hindenburg Research recently alleged that Buch had a conflict of interest with Blackstone as her husband Dhaval Buch was appointed as an advisor to the global asset management company- a major investor in Real Estate Investment Trusts (REITs).
However, SEBI refuted Hindenburg’s allegations and said that it has consistently highlighted the role of REITs, SM REITs, InvITs, Municipal Bonds, etc, to advance Indian securities market.
