NEW DELHI: A day after ICICI bank declined Congress‘ allegations of providing regular income to Madhabi Puri Buch while being a whole time member of Sebi, the grand old party came back with more details substantiating its allegations.
Pawan Khera said that while ICICI bank’s statement attempted to address the issue, it inadvertently provided additional information that further substantiated his party’s allegations.
Pointing out a mismatch in Buch’s average salary while she was with ICICI and the retiral benefit after she left the bank, Khera said, “The average salary drawn by Ms Madhabi P Buch from 2007 up until 2013-14 (right before her superannuation from ICICI) is Rs 1.3 crore per annum. However, the so-called retiral benefit given by ICICI to Madhabi Buch from 2016-17 to 2020-21 averages to around Rs 2.77 crore per annum.”
“How can a person’s retiral benefit be more than her salary as an employee?,” he questioned.
‘Violation of the Income Tax Act’
Accusing Buch of non-compliance of the Income Tax Act, Khera said, ICICI paid TDS on ESOP on behalf of Madhabi Puri Buch. Now the question is whether such a policy is applicable to all officers/employees of ICICI?”
“But if ICICI pays TDS on ESOP on behalf of Madhabi Puri Buch, then should it not be counted in the income of Madhabi Puri Buch? If it is in the income, then tax should be paid, so why did ICICI not show this TDS amount in Taxable Income? This is a violation of the Income Tax Act,” he added.
The bank had clarified that, according to its ESOP rules, employees, including retirees, have up to 10 years from the vesting date to exercise their ESOPs. Any income generated from these ESOPs is considered perquisite income under Income Tax regulations, it had said.
The ICICI bank had issued a statement on Monday where it said that it had not paid any salary to Buch or granted any ESOPs except her retiral benefits post retirement.
“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits.” The bank clarified that any payments made to Buch post-retirement were related to ESOPs and retiral benefits accrued during her employment,” it said.
Buch and her husband were previously accused by Hindenburg Research of holding stakes in offshore funds associated with the Adani Group, allegations they have both denied as baseless.
Pawan Khera said that while ICICI bank’s statement attempted to address the issue, it inadvertently provided additional information that further substantiated his party’s allegations.
Pointing out a mismatch in Buch’s average salary while she was with ICICI and the retiral benefit after she left the bank, Khera said, “The average salary drawn by Ms Madhabi P Buch from 2007 up until 2013-14 (right before her superannuation from ICICI) is Rs 1.3 crore per annum. However, the so-called retiral benefit given by ICICI to Madhabi Buch from 2016-17 to 2020-21 averages to around Rs 2.77 crore per annum.”
“How can a person’s retiral benefit be more than her salary as an employee?,” he questioned.
‘Violation of the Income Tax Act’
Accusing Buch of non-compliance of the Income Tax Act, Khera said, ICICI paid TDS on ESOP on behalf of Madhabi Puri Buch. Now the question is whether such a policy is applicable to all officers/employees of ICICI?”
“But if ICICI pays TDS on ESOP on behalf of Madhabi Puri Buch, then should it not be counted in the income of Madhabi Puri Buch? If it is in the income, then tax should be paid, so why did ICICI not show this TDS amount in Taxable Income? This is a violation of the Income Tax Act,” he added.
The bank had clarified that, according to its ESOP rules, employees, including retirees, have up to 10 years from the vesting date to exercise their ESOPs. Any income generated from these ESOPs is considered perquisite income under Income Tax regulations, it had said.
The ICICI bank had issued a statement on Monday where it said that it had not paid any salary to Buch or granted any ESOPs except her retiral benefits post retirement.
“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits.” The bank clarified that any payments made to Buch post-retirement were related to ESOPs and retiral benefits accrued during her employment,” it said.
Buch and her husband were previously accused by Hindenburg Research of holding stakes in offshore funds associated with the Adani Group, allegations they have both denied as baseless.
