Didn't pay salary or granted ESOPs post-retirement to SEBI's Madhabi Puri Buch: ICICI Bank rebuts INC's allegation

In a regulatory filing, the Mumbai-headquartered bank said, "ICICI Bank or its group companies have not paid any salary or granted any Esops (employee stock ownership plan) to Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013."

According to the statement, Buch, during her employment with the ICICI Group, received compensation in the form of salary, retiral benefits, bonus and Esops, in line with applicable policies.

“Under the Bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting,” the private-sector lender said, adding that all payments made to Buch post her retirement had accrued to her during her employment phase with the ICICI Group.

“These payments comprise ESOPs and retiral benefits,” it added.

However, no response has been received regarding the matter from the SEBI spokesperson so far.

Earlier on Monday, INC spokesperson Pawan Khera, in a press conference, alleged that Buch had drawn over Rs 12 crore in salary from ICICI Bank between 2017-18 and 2023-24.

Khera also claimed that during the same period Buch received an income from “ICICI Prudential” of over Rs 22 lakh; income from employee stock ownership plan exercise of Rs 2.8 crore for FY22 and FY23; and TDS on the Esop for FY22 and FY23 of over Rs 1 crore.

The Congress spokesperson alleged that Buch had violated the employee service regulations, code on conflict of interests for board members, and ICICI employees stock option scheme.

The allegations against Madhabi Puri Buch came within a month of American short-seller Hindenburg Research claiming that the SEBI’s investigations into its January 2023 report of an accounting fraud and manipulation of shares by the Adani Group was compromised.

Hindenburg Research alleged this was because of Buch’s stake in offshore entities that the Adani Group had allegedly used to siphon money, apart from impropriety and potential conflict of interest rising from her ownership of the consulting firms.

Buch and Adani Group, however, have rejected the allegations repeatedly.