Congress attacks Buch, questions ICICI Bank over excessive pension payments

The Congress party on Tuesday, 3 September, intensified its attack on SEBI chairperson Madhabi Puri Buch, accusing her of receiving regular payments from ICICI Bank and its subsidiary ICICI Prudential while serving as a whole-time member and later as Chairperson of the Securities and Exchange Board of India (SEBI).

At a press conference at Congress headquarters in New Delhi, Pawan Khera, Chairman of the Congress Media and Publicity Department, stated, "We raised three questions yesterday directed at ICICI Bank, PN, and Madhabi Puri Buch. Of these, only ICICI Bank responded, and their response has further unraveled this issue."

Khera claimed that ICICI Bank's pension payments to Buch varied significantly over the years, with some amounts exceeding her salary.

He alleged that Buch received Employee Stock Ownership Plans (ESOPs) from ICICI after her retirement. Khera questioned how Buch’s retirement benefits or pensions could surpass the annual salary she earned from the bank.

"In 2013-14, she received gratuity of Rs 71.90 lakh. In 2014-15, she received a retirement commuted pension of Rs 5.36 crore. But if there was a settlement between Madhabi Puri Buch and ICICI in 2014-15 and she did not receive anything from ICICI in 2015-16, then why did the pension restart in 2016-17," Khera asked.

"Now if we calculate the average salary of Madhabi Puri Buch from 2007-2008 to 2013-14, when she was in ICICI, it was around Rs 1.30 crore. But the average pension of Madhabi Puri Buch is Rs 2.77 crore. Which is the job in which the pension is more than the salary?" he questioned.

Additionally, Khera raised concerns about ICICI Bank paying the Tax Deducted at Source (TDS) on Buch's ESOPs. He asked, "Why did ICICI Bank pay the TDS on Buch's ESOPs? Is this standard protocol for all current and former employees? Why wasn't this TDS amount reported as taxable income for Buch? Is this not a clear violation of the Income Tax Act?"

Referring to ICICI's response to Congress' allegations, Khera told media that "ICICI says that our employees and retired employees have the choice to exercise their ESOPs. ICICI has written on an American website that if one resigns from ICICI Bank, then ESOPs can be exercised within three months of the resignation."

"But Madhabi Buch ji is still running ESOPs even after 8 years of resigning. Why does not every ICICI employee get this kind of benefit?" Khera asked.

In a startling revelation on Monday, 2 September, the Congress party had raised serious concerns about a potential conflict of interest involving SEBI chairperson Madhabi Puri Buch, who is responsible for regulating India's financial markets.

Khera alleged that Buch received a salary/income from ICICI Bank while holding a key position at SEBI, casting doubt on the regulator's impartiality and independence.

Khera asserted that this situation represents a grave breach of ethics and accountability in public service. He emphasised that the integrity of SEBI, which is tasked with safeguarding the interests of millions of investors, is now under question.