Congress Targets SEBI Chairperson Madhabi Puri Buch For Alleged Financial Benefits From ICICI Bank

The Congress party has intensified its criticism of SEBI Chairperson Madhabi Puri Buch, alleging she received continuous income from ICICI Bank and its subsidiary ICICI Prudential while serving as a full-time member and later as the head of the capital markets regulatory body.

At a press conference, Pawan Khera, Chairman of the Media and Publicity Department of Congress, claimed that ICICI Bank paid varying pensions to Buch over different years, which he claimed were inconsistent.

He also mentioned that Buch continued to benefit from Employee Stock Ownership Plans (ESOPs) even after her retirement from the group. Khera questioned how her retirement benefits or pensions could exceed the average annual salary she earned at ICICI.

ICICI Bank's Response

In response to these allegations, ICICI Bank clarified in a stock exchange filing that neither the bank nor its group companies had paid any salary or granted ESOPs to Buch after her retirement, except for her retiral benefits. The bank stated that during her employment, Buch received compensation through salary, retiral benefits, bonuses, and ESOPs according to applicable policies.

Buch retired from the ICICI Group on October 31, 2013. According to the bank's ESOP rules at that time, employees, including retirees, could exercise their ESOPs up to ten years from the vesting date. The lender emphasized this point in their filing.

Khera also raised concerns about the Tax Deducted at Source (TDS) paid by ICICI Bank on Buch's ESOPs. He questioned why the bank paid TDS on her behalf and whether this practice was consistent for all past and present employees. Khera asked if this action constituted non-compliance with the Income Tax Act.

Congress' Allegations

During his press conference, Khera said, "We asked three questions yesterday (which was directed towards ICICI bank, PN and Buch). Of the three, ICICI bank responded to our allegations, which has in fact helped us in un-layering this expose further." He further elaborated on how these responses have provided more clarity on their claims.

The Congress party shared their latest findings on Madhabi Puri Buch and ICICI Bank via a tweet thread. This thread included a statement by Shri Pawan Khera detailing their accusations against Buch and the financial practices of ICICI Bank.

ICICI Bank explained that all payments made to Buch post-retirement were accrued during her employment period with them. These payments included ESOPs and retiral benefits as per their policies at that time. The bank reiterated that these compensations were in line with existing rules when they were granted.

The exchange filing also noted that under Income Tax rules, the difference between the stock price on exercise day and the allotment price is treated as perquisite income. This income is reflected in Part B of Form 16 for employees and retirees alike. The bank is required to deduct perquisite tax on this income.

The Congress party continues to scrutinize these financial dealings closely. They argue that there are inconsistencies in how these benefits were managed and reported by both Buch and ICICI Bank.