ICICI Bank has issued a statement refuting media reports that allege the lender continued paying a salary to SEBI Chairperson Madhabi Puri Buch after her retirement.

The bank clarified that no salary or ESOPs have been granted to Buch since her retirement on October 31, 2013, aside from her rightful retirement benefits.

In its statement, ICICI Bank explained that the payments made to Buch post-retirement were solely related to Employee Stock Options (ESOPs) and retiral benefits accrued during her tenure with the bank.

These ESOPs, as per the bank’s rules at the time, could be exercised up to 10 years after vesting, even by retired employees. The bank also noted that the tax on these benefits, as required by Income Tax rules, was reflected in the Form 16 issued to Buch.

Congress questions SEBI Chief

The clarification from ICICI Bank comes in response to allegations raised by Congress leader Pawan Khera, who claimed that while serving as a full-time member of SEBI, Buch continued to draw income from ICICI Bank, including ₹16.80 crore in ESOPs and TDS.

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He argued that this was a direct violation of Section 54 of SEBI regulations and demanded Buch’s resignation.

These accusations follow other controversies surrounding the SEBI chief, including claims made by Hindenburg Research about her financial ties, which both she and her husband categorically denied.

ICICI Bank reiterated that all payments to Buch were in full compliance with the law and that these payments were linked to benefits earned during her employment with the bank, not for any services rendered post-retirement.

Recent developments have further intensified scrutiny on Madhabi Puri Buch’s alleged financial ties with ICICI Bank.  Subhash Chandra, the founder of ZEEL, in a recent press conference, claimed that communications between key individuals, including Chanda Kochhar and Madhabi Puri Buch, could expose a pattern of collaboration.

Chandra alleged, “It was Chanda Kochhar and her husband; and Madhabi Puri Buch and her husband; working in tandem, hence Madhabi Puri Buch was paid hefty sums of money by ICICI while she was the Whole-Time Member at SEBI.”

Chandra also pointed to the broader implications of these ties, suggesting that recent revelations by Hindenburg and ICICI Bank might be indicative of a larger modus operandi.

He stated, “On looking at the latest Hindenburg and ICICI Bank revelations against Madhabi Puri Buch and her connected persons, it seems that the person who approached me may have been right. Perhaps this was the modus operandi in various cases, which have got settled or adjudicated through compounding with a light touch.”