Congress Demands Answers From ICICI, Madhabi Buch On "Retiral Payouts"
The Indian National Congress (INC), on Tuesday, has hit back at ICICI after the bank released a statement addressing the allegations made by the party regarding the salary to Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI). Seeking clarification from both the private bank and the SEBI chairperson regarding the “retiral benefit” paid to her by the former, the party pointed out that the payouts to her post-retirement exceeded her salary as the bank’s employee.
In a press conference, Congress spokesperson Pawan Khera raised concerns regarding the non-uniformity in terms of amount and frequency of the payments. The party highlighted that from 2007 to 2013-2014, Buch received Rs 130 lakhs per annum, but the “retiral benefit” she received from 2016-17 to 2020-21 amounts to roughly Rs 277 lakhs per annum. “How can a person’s “retiral benefit” be more than her salary as an employee?” asked the party.
Further questioning the various alleged inconsistencies in ICICI’s explanations, Khera countered the private bank’s response that employees, including retired ones, had the option to exercise ESOP’s up to ten years post-vesting.
Citing ICICI’s ESOP policy, wherein former employees exercise their options within a maximum of three months post-termination, he asked, “Where is this ‘revised policy’ under which Ms. Madhabi P. Buch was able to exercise ESOPs 8 years after her voluntary termination?”
The party also raised concerns about ICICI paying the Tax Deducted at Source (TDS) on the SEBI chairperson’s ESOPs on her behalf. Asking whether the protocol was followed for all employees or if Buch received preferential treatment, Khera highlighted that the additional benefits she received coincided with her appointment at SEBI.
Congress also highlighted the discrepancy in ICICI Bank’s ESOP policy domestically and in the US.
Here is our latest statement on the conflict of interest issue involving the SEBI Chairperson. It is a reply to the feeble defence mounted yesterday evening in response to the revelations yesterday morning. pic.twitter.com/MfsKJkfrTW
— Jairam Ramesh (@Jairam_Ramesh) September 3, 2024
“The only ESOP policy ICICI has publicly disclosed on its website is the one uploaded on the U.S. Securities and Exchange Commission (SEC) website, which clearly states that former employees can exercise their ESOPs within a maximum of three months following their voluntary termination,” Khera said.
Read Also: SEBI Chief Drawing Salary From ICICI: Congress’ “Big Expose” On Madhabi Puri Buch
In a statement released yesterday, ICICI Bank had denied the claims made by the grand old party, stating that Buch was not paid any salary or granted any ESOPs post her retirement in October 2013, except for her retiral benefits.
A controversy erupted after Congress alleged that Buch had received Rs 16.80 crore from ICICI Bank between 2017 and 2024, five times her SEBI salary. Khera also questioned whether Buch had a conflict of interest while overseeing probes into ICICI Bank during her tenure as SEBI chairperson. According to Khera, Buch’s actions violated Section 5 of SEBI’s Code on Conflict of Interests (2008), which prohibits employees from benefiting from external organisations.
