Congress Steps up Pressure on ICICI Bank over Payments to SEBI Chief

The Congress party challenges ICICI Bank's explanation of payments to SEBI Chief Madhabi Puri Buch, citing inconsistencies in retirement benefits and stock options. Questions arise about potential conflicts of interest and regulatory independence, prompting calls for Prime Minister Modi to address the controversy surrounding India's top market regulator.

 The Indian National Congress has stepped up its attack on ICICI Bank’s financial transactions with Madhabi Puri Buch, the current chairperson of SEBI. This is in reaction to clarification given by ICICI Bank on payments made to Buch after she left the bank. 

 Congress spokesperson Pawan Khera asked several probing questions about the nature and quantum of these payments. The party’s main focus is on what ICICI Bank refers to as ‘retiral benefits’ that were made to Buch between 2016 and 2021. Khera pointed out what seemed to be inconsistencies in the bank’s account, saying that the average annual payout of roughly ₹2. 77 crore which was much higher than the reported salary of ₹1. 3 crore during her tenure at ICICI and she was also given the position of the vice-president of the company. 

 The opposition party also criticized the bank’s policy on ESOPs and pointed out that there were discrepancies between what was disclosed by ICICI and what was done for Buch. Khera sought clarification on a ‘new policy’ which the company had implemented to enable Buch to exercise ESOPs even after he had left the bank, three months after his termination. 

 Adding to this, the Congress questioned the bank’s TDS on Buch’s behalf and whether it was a common practice for all employees or a special privilege for the former executive. 

Also Read: Kerala Congress Leader Simi Rose Bell John, expelled from the party, complains about the party’s treatment of women

 The issue is not limited to the two companies as the Congress has urged Prime Minister Narendra Modi to intervene since he has the responsibility of appointing Buch as the SEBI chairperson. The opposition party claims that such financial transactions may be a conflict of interest that may affect the credibility of India’s premier market regulator. 

 As the controversy escalates, the Congress party has not let up on its call for more disclosure and demanding an inquiry into the business connection between ICICI Bank and the present SEBI chairman.